AEM Holdings, in the recent past, has benefited from its solid business with just one customer -- an unnamed global customer whom everyone knows is Intel Corp. AEM Executive Chairman Loke Wai San speaking with investors. NextInsight file photoNow, AEM has added another global name to its customer list -- Huawei, the world's 7th largest IT company by revenue (US$89 billion in 2017, just behind Microsoft).AEM today said Huawei has chosen AEM’s test solution to help Huawei’s 5G rollout. |
AEM's solution was developed in collaboration with China Electronics Technology Group Corporation No.23 Research Institute (“CETC23”) for qualifying "high-performance short reach cabling links" for Huawei’s 5G backhaul network.
“Test throughput together with overall cost of testing are important considerations in choosing test solutions for the high performance 5G components,” said An Sun, Project Manager at Huawei’s Cable & Connector Lab.
| On 28 Sept 2018, Aberdeen Asset Management emerged as a substantial shareholder of AEM Holdings when its deemed interest crossed the 5% shareholding threshold. Its funds made another purchase, on 2 Oct 2018, for a total of 3,660,200 shares bought on 28 Sept and 2 Oct. That upped its deemed interest to 16,481,200 shares, or a 6.13% stake in AEM currently valued at $13.1 million. |
AEM said it would deliver the first test solution for testing 100Gbps links for Huawei’s short reach 5G backhaul network in 2019.
AEM’s Executive Chairman, Loke Wai San, explained, “AEM’s advanced test technology and the ability to customize the test solution to our customer’s needs in collaboration with CETC23 helped the customer choose our solution.”
He added, “The combined advantage of AEM’s high performance communications cabling test system and our expertise in automating the test environment will enable us to achieve the stringent quality and cost targets for 5G component testing. We re-affirm our commitment to serve the 5G economy through our innovative solutions."
AEM's 3Q results are expected to be released in early November.
Net profit improved 43.4% from S$12.3 million in 1H2017 to S$17.7 million in 1H2018 due to higher sales, product margin and cost efficiency improvements. In two separate announcements through 1H2018, AEM guided that it expects to record at least S$255 million in revenue and S$42 million in operating profit before tax for the full year 2018. |
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