Excerpts from Maybank report

Analyst: Gene Lih Lai

Entering into the 2Q21 earnings season, we remain Positive on the Singapore tech sector.

On the back of strong WFE spending momentum, we believe UMS and Frencken have room to beat on results.

While we are cautious towards risks of earnings disappointment for AEM and VMS (Venture), we are positive on their prospects over the next 12 months and beyond, based on currently visible drivers.

We continue to see supply-side risks as key ones that could curb earnings performance as we move throughout 2021.



2Q21E PATMI range

Basis for 2Q21 estimate/ Thesis/ Risks


SGD14-16m (-22% YoY at midpoint)

Basis: We expect 2Q21 to be sequentially stronger than 1Q21 (PATMI: SGD13.2m).

Upside drivers: We believe stronger than expected cloud spending recovery, and/ or materially accretive M&As are upside drivers in 2H21 and beyond.

Risks: As AEM has reiterated that new generation of HDMT equipment will undergo production ramp-up in late 3Q21 through 2022, we do not see demand as the key risk as we enter a new earnings cycle. Rather, we see any unforeseen supply side bottlenecks as the key risk.

From a stock trading perspective, AEM has gained 20% since it bottomed out in mid-May. We do not rule out profit taking in the near term, especially if the market perceives 2Q21 results to be a non-event, or if 2Q21 results disappoint. We would recommend buying on dips if our thesis remains intact.

Full report here. 

Share Prices

Counter NameLastChange
AEM Holdings5.1600.120
Avi-Tech Electronics0.370-0.010
China Sunsine0.495-
Food Empire0.770-
Fortress Minerals0.3900.005
Geo Energy Res0.270-0.005
Golden Energy0.3000.010
GSS Energy0.071-
ISDN Holdings0.7100.015
IX Biopharma0.225-0.005
Jiutian Chemical0.071-
KSH Holdings0.350-
Leader Env0.073-
Medtecs Intl0.410-0.090
Moya Asia0.064-
Nordic Group0.390-
Oxley Holdings0.190-
REX International0.2800.010
Sinostar PEC0.300-
Southern Alliance Mining0.7400.005
Sri Trang Agro1.210-0.100
Straco Corp.0.465-0.005
Sunpower Group0.4900.005
The Trendlines0.106-
Totm Technologies0.2100.010
UG Healthcare0.355-0.070
Uni-Asia Group1.3400.020
Wilmar Intl4.160-0.030
Yangzijiang Shipbldg1.300-

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