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When AEM Holdings gives its 1Q2020 performance update towards the end of this month, it would have an upbeat tone, as it has been virtually untouched by the greatest pandemic in history which has overwhelmed most other businesses.
AEM last night maintained the above revenue guidance for FY2020. |
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AEM has unusual revenue visibility mainly because it has just one key customer (accounting for roughly 90% of revenue), who gives advance orders. And that is Intel Corp.
AEM last night updated the market on its manufacturing operations in Singapore, Malaysia and China:
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No material impact |
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• China: Operations have continued since 12 February 2020 after the stop work order was lifted by the authorities.
• Penang: Its plant has been operating with a leaner workforce since receiving approval from the Malaysian authorities after the Movement Control Order (MCO) was issued on 18 March 2020.
• Singapore: Operations have continued to go on since 3 April 2020 when Singapore announced the implementation of a circuit breaker to reduce the risk of further local transmission of Covid-19.
AEM received approval from the Ministry of Trade and Industry for an exemption of suspension of workplace activities at its premises in Singapore as it provides manufacturing services that are part of an essential supply chain.
AEM said the Group is currently continuing to operate worldwide "without any material adverse impact" from the anti-Covid-19 measures that have been implemented by the various government agencies.
