AEM Holdings - DBS Research 2021-05-04: 1Q21 Net Profit Of S$13.3m (-63.1% y-o-y), Below Expectations

AEM HOLDINGS LTD (SGX:AWX) | SGinvestors.io 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.






DBS Group Research DBS Group Research | https://www.dbsvickers.com/ 2021-05-04
SGX Stock Analyst Report UNDER REVIEW MAINTAIN BUY 5.360 SAME 5.360



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