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 Holdings1.820-0.030
AusGroup0.030-0.001
Avi-Tech Electronics0.375-
Best World Int.1.360-
CEI0.960-0.020
China Sunsine1.060-0.010
CNMC GoldMine0.250-0.005
CSE Global0.555-0.015
Eagle HTrust USD0.530-0.005
Food Empire0.600-0.015
Golden Energy0.165-0.004
GSS Energy0.088-0.006
ISDN Holdings0.220-0.005
ISOTeam0.2450.005
JB Foods0.650-
KSH Holdings0.455-0.020
Miyoshi0.033-0.001
Moya Asia0.066-0.001
Nordic Group0.270-
Oxley Holdings0.355-0.005
Procurri0.370-
REX International0.174-0.018
Riverstone0.9650.005
Roxy-Pacific0.4000.015
Sing Holdings0.395-0.005
SingMedical0.305-0.010
Straco Corp.0.705-0.010
Sunningdale Tech1.290-0.010
Sunpower Group0.545-0.020
The Trendlines0.0900.001
Tiong Seng0.200-0.025
Uni-Asia Group0.730-0.010
Yangzijiang Shipbldg1.020-0.040

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