I think AEM Holdings Ltd still has uptrending potential. I attended AEM recent AGM and spoke with their top management. Here is why ?
AEM offers application-specific intelligent system test and handling solutions for semiconductor and electronics companies serving the 5G and artificial intelligence (AI) markets.
The group has five manufacturing plants located in Singapore, Malaysia, China, France and Finland. AEM just announced a stellar set of earnings for the first half of 2020.
Revenue jumped by 81.7 per cent year on year to hit $273.7 million. Net profit more than doubled from $22.3 million a year ago to $55.3 million.
All divisions recorded growth in sales, and demand for the group’s semiconductor test solutions continues to be robust.
Although the pandemic has disrupted global supply chains, AEM was minimally affected.As both 5G and AI markets are displaying promising future growth, this long-term catalyst should stand AEM in good stead.
Aside from organic growth, AEM is also growing through acquisitions.
In July, the group announced the acquisition of DB Design Group, Inc. DB is a world-renowned supplier of automation fixtures and other test-related products.
This acquisition helps to expand AEM design and application engineering capabilities, and also expands its client base to include more names in the semiconductor and electronics industries.
Last year in December, AEM had acquired Mu-TEST, an automated test equipment company, for EUR 7.5 million (S$12 million).
The acquisition added customised tester development capabilities to AEM growing list.
These acquisitions will broaden AEM product and service offering and act as a strong catalyst for the group to capture more business and clients in future years.
I have done some research and will share more convincing information in my next update.
AEM Holdings Ltd. (AWX) Gets a Buy from DBS
Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.
