AEM HOLDINGS LTD (SGX:AWX)
AEM Holdings - 1Q21 Net Profit Of S$13.3m (-63.1% y-o-y), Below Expectations
- AEM (SGX:AWX)'s 1Q21 revenue declined 45.4% y-o-y to S$80.2m; net profit declined 63.1% y-o-y to S$13.3m. See AEM's announcements,
- The large y-o-y decline is due to unfavourable comparison with an exceptional ramp up from its key customer last year (1Q20).
- Revenue from Tools & Machine declined 72.9% y-o-y to S$21.0m while revenue from Consumables and Services declined 22.8% y-o-y to S$53.5m.
- Net profit margin normalised to 16.5% (-8.1ppts y-o-y) as compared to the exceptional economies of scale achieved in 1Q20.
Key Corporate Developments of AEM
- Next generation handlers on track to start high volume ramp at customer sites in late 3Q21 and into FY22.
- Technology acquisitions and in-house R&D bearing results with engineering engagements with 10 out of top 20 semiconductor companies for potential volume ramp in FY22/23.
- CEI Limited (SGX:AVV) became a subsidiary from 19 March 2021.
- Entered the memory IC test market with ATECO investment.
- Revenue guidance of S$460-520m for FY21.
Our Thoughts
- Despite strong industry data and positive developments from Intel (key customer), AEM reported 1Q21 net profit
Industry developments remain strong.
- Industry data points and developments continue to point towards a strong FY21 under review. More updates to be provided after the results briefing with AEM's management.
- See
DBS Group Research
DBS Group Research
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https://www.dbsvickers.com/
2021-05-04
SGX Stock
Analyst Report
5.360
SAME
5.360
