Excerpts from Maybank KE report

Analyst: Gene Lih Lai, CFA

9M19 ahead; setting up for FY20E growth; BUY

Reiterate BUY with higher ROE-g/COE-g TP of SGD2.12 (4.1x blended FY19-20E P/B, prev: 3.2x), as we raise FY19-21E EPS by 13-71%, factoring in:

AEM 

Share price: 
$1.63

Target: 
$2.12

i) AEM’s higher FY19E revenue guidance;

ii) stronger-than-expected HDMT momentum; and

iii) inclusion of contributions from hybrid project and cable testers for Huawei in FY20-21E.


9M19 PATMI already reached 95%/93% of our/consensus’ FY19E estimates.

Despite high-base effects, FY20E dynamics appear favourable for further growth.

Strong FY20E guidance would be a catalyst, while weak demand for key customer’s chips would be a key risk.


Full report here.


Excerpts from KGI report

Analyst: Tan Jiunn Chyuan (Kenny)

AEM 

Share price: 
$1.63

Target: 
$1.80

AEM’s 3Q19 results exceeded expectations. 9M19 results now form 79% of our initial 2019 sales forecast, and 96% of our initial 2019 PATMI forecast. AEM has also increased revenue guidance to S$305-315mn for FY2019

 We researched key customer wallet share amongst test equipment peers to better understand AEM’s revenue sustainability with the key customer

 We amend our revenue forecast to include the potential sales of AEM’s next generation of test handlers. Our new PATMI forecast is S$44.6/41.2/45.3 mn for 2019/2020/2021F

 Maintain OUTPERFORM. We increase our 12M Target Price to S$1.80, from S$1.34. We look forward to 6 November for management’s presentation for potential insights


Full report here.

 


Share Prices

Counter NameLastChange
AEM Holdings1.850-0.020
AusGroup0.031-0.002
Avi-Tech Electronics0.3750.005
Best World Int.1.360-
CEI0.9800.025
China Sunsine1.070-0.010
CNMC GoldMine0.255-0.005
CSE Global0.570-0.010
Eagle HTrust USD0.535-
Food Empire0.6150.010
Golden Energy0.1690.003
GSS Energy0.094-0.005
ISDN Holdings0.225-
ISOTeam0.240-0.005
JB Foods0.6500.015
KSH Holdings0.4750.005
Miyoshi0.034-0.001
Moya Asia0.067-0.003
Nordic Group0.270-
Oxley Holdings0.360-
Procurri0.370-
REX International0.192-0.004
Riverstone0.960-
Roxy-Pacific0.385-
Sing Holdings0.400-
SingMedical0.315-
Straco Corp.0.715-
Sunningdale Tech1.3000.020
Sunpower Group0.565-0.020
The Trendlines0.089-0.001
Tiong Seng0.2250.020
Uni-Asia Group0.740-0.005
Yangzijiang Shipbldg1.060-0.020

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