$AEM HOLDINGS LTD(AWX.SI)$...AEM has delivered an astonishing 1H22 results with 180%+ yoy growth both in revenue and net profit!
It has acquired 2 new customers and made one acquisition to continue its inorganic growth strategy.
It has also raised its FY22 full year revenue target by $50m to $750m to $850m.
Given $Intel(INTC)$'s earlier reports of slowdown in capex spending and recent negative sentiment in semi, what a relief to AEM's investors!
Will the pass of CHIPS Act create a boom in the next few years for capex spending? Possible.
Nevertheless one should observe thatAEM's quarterly revenue growth has peaked in 1Q22 and is slowing down now QoQ, the company has also confirmed the outlook of a softer 2H22 as compared to 1H22.
Still a phenomenal company to watch!
Comments
$AEM HOLDINGS LTD(AWX.SI)$ ...AEM jumped after its earnings report in mid August as expected, thanks to the great performance.
It reached a peak of $4.639. Thereafter it has declined to $4.38, exactly the same price as when I wrote my previous note.
Why?
As explained, it's growth cycle might have been peaked, as per the guidance of the company.
So where is it going from here?
In short term, the share price has come to a point where it may see somesupport. It also depends on inflow of news specific to the company, eg new customer acquisition.
In macro view, Semi is now in a great flux. There are many drivers therefore possible moves ahead.
Other Semi related companies $UMS HOLDINGS LIMITED(558.SI)$ $FRENCKEN GROUP LIMITED(E28.SI)$
Frencken has c.40% dependency on Semi, while AEM and UMS majority inSemi and with very high customer concentration.
[Smile]