wha, i like the idea of clawback...it' s payback time ya...
wonderful suggestion!
LoudShout ( Date: 19-Jan-2024 13:37) Posted:
(The initial investigation into this issue attributes the shortfall to human error in transactions with the Group& rsquo s ERP system during the migration of production to the Group& rsquo s Penang facility from Singapore. These errors were not detected by the existing controls and processes that are in place. As a result of the Company& rsquo s initial findings, it has embarked on a process to review its inventory and stock monitoring and tracking processes and systems.)
Migration errors? No check and balance? No reconciliation of figures prior and after migration?
Also, system tolerance check would detect the anomalies.
Not human input error, Migration error, system unable to detect..
Share price plunged, shareholders feel the immediate impact.
BOD and management should have their bonuses, share options clawback.
when a company fails or don' t perform to mark or up to expectations, who should you look for? Nope, not Ghostbusters, but the CEO of course!
112233 ( Date: 19-Jan-2024 13:06) Posted:
An independent investigation must be done. Inventory missing just because of the move to Penang? Or someone has been fudging numbers all along to prop up company valuation?
AEM had a bizarre announcement on Sunday evening the 14th of January 2024: inventory was &ldquo lost&rdquo on the way to Penang from its Singapore factory.
Given AEM&rsquo s stellar corporate governance reputation up until now, this raises more than a few eyebrows: how is this even possible?
4Q23 results, due in a month, will feature a large restatement of FY23 results and lead to a major earnings loss. Any recovery is delayed into FY25.
if u ask me, I am DISGUSTED!
DISGRACEFUL that such thing should happen!
where' s the DUE DILLIGENCE?
from a DARLING stock which could be DUE for a NASDAQ listing to a DYING stock...
Joelton ( Date: 18-Jan-2024 14:53) Posted:
Maybank disappointed in AEM&rsquo s execution downgrades to &lsquo hold&rsquo with lower target at S$3.26
MAYBANK Securities has downgraded AEM to &ldquo hold&rdquo from &ldquo buy&rdquo , while lowering its price target to S$3.26 from S$3.76 on Wednesday (Jan 17).
The semiconductor equipment maker disclosed on Sunday that a human error in data entry for transactions caused a 5 to 7 per cent shortfall in its last reported inventories. The brokerage is disappointed by AEM&rsquo s internal processes that led to &ldquo such a basic error&rdquo .
&ldquo While AEM has proven itself over the years, the inventory shortfall mistake has impacted our confidence in management&rsquo s execution, and while we believe the worst should be over, we now only expect a more substantial recovery in FY2025,&rdquo said Maybank analyst Jarick Seet.
He expects the inventory shortfall will lead to an impairment of about S$18 million to S$25 million for FY2023&rsquo s results, which is likely to result in an overall loss. He slashed the earnings forecast for FY2023 to a negative S$12.7 million, from a positive S$9.6 million.
Amid a muted recovery for the manufacturer, he cut the earnings forecasts for FY2024 by 33.6 per cent, and by 21.9 per cent for FY2025.
&ldquo AEM expects a ramp-up by its new customers and existing customers in late 2024 instead of H1 2024, as protracted recovery in tester utilisation rates is now expected,&rdquo said Seet, adding that most customers have reduced the capital expenditure for testing on weaker end-demand across the industry.
On Sunday, AEM said the shortfall in its last reported S$358.6 million inventory figure would have a negative impact on its FY2023 profitability. Citi Research estimated the loss to be between S$14 million and S$20 million on a post-tax basis, representing 46 to 65 per cent of its current FY2023 profit forecasts.
While Citi has maintained its &ldquo buy&rdquo call with a price target of S$3.78, DBS Group Research has kept its &ldquo hold&rdquo call with a target of S$3.
DBS expects AEM to sink deeper into the red with more than 2 per cent trimmed off revenue estimates, if the company is unable to fulfil any orders due to the shortfall in its inventory. The research house, however, highlighted a long-term positive view on the semiconductor player&rsquo s superiority in system level test.
Maybank is not on target. TP $3.26????
Wake up!
It is $3.04...
Is it $2.26? Typo? Overstated...?.:)
Joelton ( Date: 18-Jan-2024 14:53) Posted:
Maybank disappointed in AEM&rsquo s execution downgrades to &lsquo hold&rsquo with lower target at S$3.26
MAYBANK Securities has downgraded AEM to &ldquo hold&rdquo from &ldquo buy&rdquo , while lowering its price target to S$3.26 from S$3.76 on Wednesday (Jan 17).
The semiconductor equipment maker disclosed on Sunday that a human error in data entry for transactions caused a 5 to 7 per cent shortfall in its last reported inventories. The brokerage is disappointed by AEM&rsquo s internal processes that led to &ldquo such a basic error&rdquo .
&ldquo While AEM has proven itself over the years, the inventory shortfall mistake has impacted our confidence in management&rsquo s execution, and while we believe the worst should be over, we now only expect a more substantial recovery in FY2025,&rdquo said Maybank analyst Jarick Seet.
He expects the inventory shortfall will lead to an impairment of about S$18 million to S$25 million for FY2023&rsquo s results, which is likely to result in an overall loss. He slashed the earnings forecast for FY2023 to a negative S$12.7 million, from a positive S$9.6 million.
Amid a muted recovery for the manufacturer, he cut the earnings forecasts for FY2024 by 33.6 per cent, and by 21.9 per cent for FY2025.
&ldquo AEM expects a ramp-up by its new customers and existing customers in late 2024 instead of H1 2024, as protracted recovery in tester utilisation rates is now expected,&rdquo said Seet, adding that most customers have reduced the capital expenditure for testing on weaker end-demand across the industry.
On Sunday, AEM said the shortfall in its last reported S$358.6 million inventory figure would have a negative impact on its FY2023 profitability. Citi Research estimated the loss to be between S$14 million and S$20 million on a post-tax basis, representing 46 to 65 per cent of its current FY2023 profit forecasts.
While Citi has maintained its &ldquo buy&rdquo call with a price target of S$3.78, DBS Group Research has kept its &ldquo hold&rdquo call with a target of S$3.
DBS expects AEM to sink deeper into the red with more than 2 per cent trimmed off revenue estimates, if the company is unable to fulfil any orders due to the shortfall in its inventory. The research house, however, highlighted a long-term positive view on the semiconductor player&rsquo s superiority in system level test.
if u ask me, I am DISGUSTED!
DISGRACEFUL that such thing should happen!
where' s the DUE DILLIGENCE?
from a DARLING stock which could be DUE for a NASDAQ listing to a DYING stock...
Joelton ( Date: 18-Jan-2024 14:53) Posted:
Maybank disappointed in AEM&rsquo s execution downgrades to &lsquo hold&rsquo with lower target at S$3.26
MAYBANK Securities has downgraded AEM to &ldquo hold&rdquo from &ldquo buy&rdquo , while lowering its price target to S$3.26 from S$3.76 on Wednesday (Jan 17).
The semiconductor equipment maker disclosed on Sunday that a human error in data entry for transactions caused a 5 to 7 per cent shortfall in its last reported inventories. The brokerage is disappointed by AEM&rsquo s internal processes that led to &ldquo such a basic error&rdquo .
&ldquo While AEM has proven itself over the years, the inventory shortfall mistake has impacted our confidence in management&rsquo s execution, and while we believe the worst should be over, we now only expect a more substantial recovery in FY2025,&rdquo said Maybank analyst Jarick Seet.
He expects the inventory shortfall will lead to an impairment of about S$18 million to S$25 million for FY2023&rsquo s results, which is likely to result in an overall loss. He slashed the earnings forecast for FY2023 to a negative S$12.7 million, from a positive S$9.6 million.
Amid a muted recovery for the manufacturer, he cut the earnings forecasts for FY2024 by 33.6 per cent, and by 21.9 per cent for FY2025.
&ldquo AEM expects a ramp-up by its new customers and existing customers in late 2024 instead of H1 2024, as protracted recovery in tester utilisation rates is now expected,&rdquo said Seet, adding that most customers have reduced the capital expenditure for testing on weaker end-demand across the industry.
On Sunday, AEM said the shortfall in its last reported S$358.6 million inventory figure would have a negative impact on its FY2023 profitability. Citi Research estimated the loss to be between S$14 million and S$20 million on a post-tax basis, representing 46 to 65 per cent of its current FY2023 profit forecasts.
While Citi has maintained its &ldquo buy&rdquo call with a price target of S$3.78, DBS Group Research has kept its &ldquo hold&rdquo call with a target of S$3.
DBS expects AEM to sink deeper into the red with more than 2 per cent trimmed off revenue estimates, if the company is unable to fulfil any orders due to the shortfall in its inventory. The research house, however, highlighted a long-term positive view on the semiconductor player&rsquo s superiority in system level test.
Dissapointed? Should use a stronger word! Deeply Dissapointed maybe?
Joelton ( Date: 18-Jan-2024 14:53) Posted:
Maybank disappointed in AEM&rsquo s execution downgrades to &lsquo hold&rsquo with lower target at S$3.26
MAYBANK Securities has downgraded AEM to &ldquo hold&rdquo from &ldquo buy&rdquo , while lowering its price target to S$3.26 from S$3.76 on Wednesday (Jan 17).
The semiconductor equipment maker disclosed on Sunday that a human error in data entry for transactions caused a 5 to 7 per cent shortfall in its last reported inventories. The brokerage is disappointed by AEM&rsquo s internal processes that led to &ldquo such a basic error&rdquo .
&ldquo While AEM has proven itself over the years, the inventory shortfall mistake has impacted our confidence in management&rsquo s execution, and while we believe the worst should be over, we now only expect a more substantial recovery in FY2025,&rdquo said Maybank analyst Jarick Seet.
He expects the inventory shortfall will lead to an impairment of about S$18 million to S$25 million for FY2023&rsquo s results, which is likely to result in an overall loss. He slashed the earnings forecast for FY2023 to a negative S$12.7 million, from a positive S$9.6 million.
Amid a muted recovery for the manufacturer, he cut the earnings forecasts for FY2024 by 33.6 per cent, and by 21.9 per cent for FY2025.
&ldquo AEM expects a ramp-up by its new customers and existing customers in late 2024 instead of H1 2024, as protracted recovery in tester utilisation rates is now expected,&rdquo said Seet, adding that most customers have reduced the capital expenditure for testing on weaker end-demand across the industry.
On Sunday, AEM said the shortfall in its last reported S$358.6 million inventory figure would have a negative impact on its FY2023 profitability. Citi Research estimated the loss to be between S$14 million and S$20 million on a post-tax basis, representing 46 to 65 per cent of its current FY2023 profit forecasts.
While Citi has maintained its &ldquo buy&rdquo call with a price target of S$3.78, DBS Group Research has kept its &ldquo hold&rdquo call with a target of S$3.
DBS expects AEM to sink deeper into the red with more than 2 per cent trimmed off revenue estimates, if the company is unable to fulfil any orders due to the shortfall in its inventory. The research house, however, highlighted a long-term positive view on the semiconductor player&rsquo s superiority in system level test.
Significantly high institutional ownership implies AEM Holdings' stock price is sensitive to their trading actions
A total of 8 investors have a majority stake in the company with 51% ownership
Analyst forecasts along with ownership data serve to give a strong idea about prospects for a business
To get a sense of who is truly in control of AEM Holdings Ltd. (SGX:AWX), it is important to understand the ownership structure of the business. With 41% stake, institutions possess the maximum shares in the company. In other words, the group stands to gain the most (or lose the most) from their investment into the company.
And so it follows that institutional investors was the group most impacted after the company' s market cap fell to S$958m last week after a 7.7% drop in the share price. This set of investors may especially be concerned about the current loss, which adds to a one-year loss of 3.8% for shareholders. Also referred to as " smart money" , institutions have a lot of sway over how a stock' s price moves. As a result, if the decline continues, institutional investors may be pressured to sell AEM Holdings which might hurt individual investors.
In the chart below, we zoom in on the different ownership groups of AEM Holdings.
What Does The Institutional Ownership Tell Us About AEM Holdings?
Institutions typically measure themselves against a benchmark when reporting to their own investors, so they often become more enthusiastic about a stock once it' s included in a major index. We would expect most companies to have some institutions on the register, especially if they are growing.
AEM Holdings already has institutions on the share registry. Indeed, they own a respectable stake in the company. This suggests some credibility amongst professional investors. But we can' t rely on that fact alone since institutions make bad investments sometimes, just like everyone does. When multiple institutions own a stock, there' s always a risk that they are in a ' crowded trade' . When such a trade goes wrong, multiple parties may compete to sell stock fast. This risk is higher in a company without a history of growth. You can see AEM Holdings' historic earnings and revenue below, but keep in mind there' s always more to the story.
SGX:AWX Earnings and Revenue Growth January 16th 2024
Hedge funds don' t have many shares in AEM Holdings. Looking at our data, we can see that the largest shareholder is Temasek Holdings (Private) Limited with 13% of shares outstanding. Employees Provident Fund of Malaysia is the second largest shareholder owning 11% of common stock, and abrdn plc holds about 10% of the company stock.
The former chief executive officer of AEM-Evertech, the Singapore-listed micro-electronics company, has been charged with four counts of bribery and corruption. Ang Seng Thor, who was also the managing director of AEM-Evertech, is accused of paying bribes amounting to over S$200,000 to staff at Seagate Technology International and Infineon Technologies Malaysia between 2004 &ndash 2005, in order to gain business advantages for AEM.
Ang is also accused of two counts of making false declarations to the Immigration and Checkpoints Authority (" ICA" ) in August 2000 to assist two members of staff obtain permanent resident status in Singapore.
The Corrupt Practices Investigation Bureau (" CPIB" ), the main body charged with investigating corruption-related offences under the Prevention of Corruption Act (" PCA" ), started its investigation into AEM-Evertech' s affairs in 2007. This investigation revealed that the company had been paying commissions to representatives of client companies. The Chief Financial Officer of AEM-Evertech, Kammy Choo, was the first to be charged for corruption offences. During the trial, the Public Prosecutors expressly informed the court that prosecution of other officers of AEM-Evertech involved in corrupt activities would follow Ms. Choo' s. In April 2010, Ms. Choo was sentenced to three months in jail because the court took the view that a fine would be insufficient punishment.
A pre-trial conference for Mr Ang' s case will be held on 10 June 2010. Under Singapore' s PCA, if convicted of corruption offences he faces a fine of up to S$100,000, plus a jail term of up to five years. If he is found guilty of giving false information to the ICA, he could face jail time of up to one year and a fine of up to S$4,000.
FATABA ( Date: 15-Jan-2024 10:53) Posted:
This is terrible ....some one ( Including senior management MUST be responsible for this....definately sleeping .
Internal stock taking can cause 5/7% diff ?? wow ....Not a small figure whatever the human error they claim to be .
Serious investigation into this is needed and show a major lack of proper mgt of inventory .
Dyodd
Joelton ( Date: 15-Jan-2024 10:01) Posted:
AEM uncovers inventory shortfall expects deficit to negatively impact group&rsquo s FY2023 profitability
As at end-September 2023, AEM' s inventories were stated to be worth S$358.6 million.
SEMICONDUCTOR equipment maker AEM Holdings : AWX 0% said on Sunday (Jan 14) that it has found a shortfall in the group&rsquo s inventories following an internal stock-taking exercise, which it expects to negatively impact the group&rsquo s profitability for FY2023.
As at end-September last year, the group&rsquo s inventories were stated to be worth S$358.6 million. This was shared in an investor update released on Nov 9, 2023.
However, a preliminary estimate suggests that the group&rsquo s inventories are anticipated to be 5 to 7 per cent lower than this figure, said AEM. It noted that the internal stock-taking exercise is still ongoing, and that it had taken into account &ldquo the ordinary and usual course of inventory movement&rdquo .
Based on an initial investigation into this issue, the group attributed the shortfall to &ldquo human error in transactions&rdquo with its enterprise resource planning system, which had occurred during the migration of production to the group&rsquo s Penang facility from Singapore.
These errors were not detected by the existing controls and processes that were in place, it added. As a result of its initial findings, it has begun a process to review its inventory and stock monitoring, as well as tracking processes and systems.
AEM expects the shortfall to have a negative impact on the group&rsquo s profitability for the financial year ended Dec 31, 2023. It will issue its unaudited condensed interim financial statements for the full year on or before Feb 29, 2024.
It also clarified that its internal stock-taking exercise was an internal exercise undertaken by the group, and is not part of the audit of the company&rsquo s accounts by external auditors.
They should change not only the CEO but the vision
FATABA ( Date: 15-Jan-2024 10:53) Posted:
This is terrible ....some one ( Including senior management MUST be responsible for this....definately sleeping .
Internal stock taking can cause 5/7% diff ?? wow ....Not a small figure whatever the human error they claim to be .
Serious investigation into this is needed and show a major lack of proper mgt of inventory .
Dyodd
Joelton ( Date: 15-Jan-2024 10:01) Posted:
AEM uncovers inventory shortfall expects deficit to negatively impact group&rsquo s FY2023 profitability
As at end-September 2023, AEM' s inventories were stated to be worth S$358.6 million.
SEMICONDUCTOR equipment maker AEM Holdings : AWX 0% said on Sunday (Jan 14) that it has found a shortfall in the group&rsquo s inventories following an internal stock-taking exercise, which it expects to negatively impact the group&rsquo s profitability for FY2023.
As at end-September last year, the group&rsquo s inventories were stated to be worth S$358.6 million. This was shared in an investor update released on Nov 9, 2023.
However, a preliminary estimate suggests that the group&rsquo s inventories are anticipated to be 5 to 7 per cent lower than this figure, said AEM. It noted that the internal stock-taking exercise is still ongoing, and that it had taken into account &ldquo the ordinary and usual course of inventory movement&rdquo .
Based on an initial investigation into this issue, the group attributed the shortfall to &ldquo human error in transactions&rdquo with its enterprise resource planning system, which had occurred during the migration of production to the group&rsquo s Penang facility from Singapore.
These errors were not detected by the existing controls and processes that were in place, it added. As a result of its initial findings, it has begun a process to review its inventory and stock monitoring, as well as tracking processes and systems.
AEM expects the shortfall to have a negative impact on the group&rsquo s profitability for the financial year ended Dec 31, 2023. It will issue its unaudited condensed interim financial statements for the full year on or before Feb 29, 2024.
It also clarified that its internal stock-taking exercise was an internal exercise undertaken by the group, and is not part of the audit of the company&rsquo s accounts by external auditors.
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