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 Holdings3.8700.030
Avi-Tech Electronics0.2800.005
Best World1.7900.030
Broadway Ind0.118-
China Sunsine0.405-
DISA0.003-
Food Empire0.635-0.015
Fortress Minerals0.330-
Geo Energy Res0.360-0.015
Golden Energy0.7850.005
GSS Energy0.0480.002
InnoTek0.455-0.015
ISDN Holdings0.4150.010
ISOTeam0.090-0.010
IX Biopharma0.1270.001
Jiutian Chemical0.0820.004
KSH Holdings0.350-
Leader Env0.056-
Medtecs Intl0.139-0.001
Meta Health0.025-
Nordic Group0.475-0.005
Oxley Holdings0.1500.001
REX International0.2400.005
Riverstone0.6400.005
Sinostar PEC0.1850.015
Southern Alliance Mining0.380-
Straco Corp.0.400-0.005
Sunpower Group0.2850.025
The Trendlines0.0930.005
Totm Technologies0.103-0.002
UG Healthcare0.194-0.001
Uni-Asia Group0.8350.005
Wilmar Intl4.120-
Yangzijiang Shipbldg1.410-0.010

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