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AEM SGD
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AEM (+Venture, UMS) the most AI-relevant SGX stock
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JurongW
Elite |
26-Feb-2026 16:26
Yells: "Earnings give weight, Chart give wings" |
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Surprising surge today despite the high valuation multiples. With EPS of 5.4 cents, the stock is trading at a P/E of 45× , which is rich by sector standards. Net profit margin stands at 4.3%, well below its historical peak range of 15&ndash 19%. This margin compression highlights the gap between current fundamentals and past profitability levels. I had considered buying shares after the results announcement to track how earning plays out. However, given the stretched multiples, I will wait for a price correction before entering.
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melody88
Member |
26-Feb-2026 14:50
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ya i bought some at $4.17 last time.... | ||||
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aragosta
Supreme |
26-Feb-2026 14:36
Yells: "BBs never say why when they buy; never tell when they sell" |
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If u want to play AEM, go for long term, and ignore the current fundamental data and figures... they' re irrelevant.......I say again....FOUR is not a joke! And we are talking about short term to mini mid term only..... same as UMS, FOUR is not playing a fool, next week will be its turn to shine, pity those who throw away their bonus shares.... literally throw away!!! AEM' s Turnaround Story When investors buy a stock like AEM Holdings despite a high P/E, low yield, and low NAV (trading well above book value), they are not looking at what the company is today, but what it will become tomorrow. They are discounting the present to price in a high-conviction growth story. They are trading current income for a structural turnaround centered on AI integration and the semiconductor industry' s cyclical recovery. Why Investors Are Buying AEM (The " Turnaround Story" ) 1. Forward Earnings Pivot Investors ignore the Trailing P/E (past performance) and focus on the much power Forward P/E. They are betting that projected earnings for 2026/2027 will surge, making today' s " expensive" price a relative bargain. 2. Structural Turnaround AEM is transitioning from a cyclical slump to a growth phase. The market rewards the inflection point ~ the moment a company proves the " worst is over" ~ more aggressively than the actual profit numbers themselves. 3. AI & HPC Revenue Ramp AEM' s shift toward High-Performance Computing (HPC) and AI customers validates its technology. This provides a " pick and shovel" play for the AI boom, which carries a higher valuation premium than legacy business. Investors are betting that demand for their advanced testing equipment will skyrocket. (Please read below all my notes on AEM, which I took so much trouble to sneak out the middle of the night to steal from those coffee shops and mafia&rsquo s vaults) 4. Expansion into New Markets The validation of AEM' s Memory Test capabilities opens a massive new revenue stream. Success in the Memory Test segment represents a massive expansion of the company' s Total Addressable Market (TAM), which is not yet reflected in the current low NAV or Book Value. Investors are pricing in this future dominance before the revenue fully hits the balance sheet. 5. Signal of Confidence Despite the low dividend yield, the resumption of payouts is a strategic signal. It confirms management' s confidence in cash flow stability and indicates that the worst of the cyclical downturn has passed, and is confident enough in the 2026 outlook to return capital to shareholders. 6. Operating Leverage & Margins As a high-tech manufacturer, AEM possesses significant operating leverage. Once fixed costs are covered, a recovery in sales volume leads to an exponential increase in net profit margins. Investors are buying in anticipation of this margin expansion. 7.Intagible Value A low NAV relative to price suggests the market is valuing intellectual property and " moats" over physical assets. Investors are paying for AEM' s proprietary testing technology, which is not easily captured on a traditional balance sheet
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wehuattogether88
Supreme |
26-Feb-2026 14:28
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AEM can easily go over $ 2.50
It used to be trading above $3 |
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melody88
Member |
26-Feb-2026 14:25
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can hit 2.5 today? | ||||
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woody88
Member |
26-Feb-2026 14:10
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Wow 20% up | ||||
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Joelton
Supreme |
26-Feb-2026 11:58
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AEM&rsquo s net profit rises 32% to S$13.9 million for H2 FY2025 proposes resuming dividend at S$0.013 The board of directors recommended a final dividend of S$0.013 per share for the year [SINGAPORE] Semiconductor equipment maker AEM Holdings on Wednesday (Feb 25) reported a net profit of S$13.9 million for H2 FY2025, up 32 per cent from S$10.5 million a year prior. Revenue for the second half of 2025 rose just 1 per cent to S$209.1 million from S$206.8 million in H2 FY2024. AEM reported FY2025 earnings of S$17.1 million for the full year ended Dec 31, 2025, up 47.8 per cent from S$11.6 million in the previous year. The results translate into an earnings per share of S$0.054 in FY2025 as compared to S$0.037 in FY2024. Revenue for FY2025 rose 5 per cent to S$399.3 million from S$380.4 million. The group attributed the improved performance to the &ldquo successful ramp-up to high-volume manufacturing&rdquo for its second artificial intelligence/high performance computing (AI/HPC) customer, which more than offset a decline in revenue from another of the group&rsquo s customers. The board of directors recommended a final dividend of S$0.013 per share for FY2025, resuming dividend payouts to shareholders, which will be paid out on May 22. The board will continue to review dividend distributions, taking into account AEM&rsquo s earnings, cash position and capital requirements. Looking ahead, the company is guiding for FY2026 revenue of S$460 million to S$510 million, underpinned by the continued ramp of its anchor AI/HPC customer and increased orders from another HPC customer to alleviate capacity constraints from surging CPU demand. AEM is also diversifying beyond logic test into the memory test segment, with validation activities with a tier-one memory customer progressing in line with expectations. Production shipments are expected to commence in late FY2026, with revenue contributions scaling meaningfully through FY2027 and beyond. Samer Kabbani, AEM&rsquo s chief executive, said: &ldquo The rapid ramp of our strategic AI/HPC customer&rsquo s business over the past year validates our leadership in advanced logic test and positions AEM at the forefront of structural semiconductor growth.&rdquo He added that the group is well positioned to take advantage of the AI boom by addressing test demand for next-generation chips, while also extending its momentum into the memory test segment with production expected in late FY2026. Shares of AEM closed down 1 per cent or S$0.02 to S$2.03 on Wednesday. |
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woody88
Member |
26-Feb-2026 10:08
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Rocket to the sky | ||||
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Trainner
Master |
26-Feb-2026 09:05
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Well done AEM!!!' 💪 💪 💪 💪 💪 💪 💪 that will help to push up the price for Frencken, Innotex and UMS...... good luck to all investors!!!!! |
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JurongW
Elite |
25-Feb-2026 23:42
Yells: "Earnings give weight, Chart give wings" |
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Based on its FY25 EPS of 5.4 cents and share price of $2.03, AEM is trading at a P/E ratio of 37x. This is well above its historical average and higher than peers such as UMS and Frencken , which typically trade in the 15&ndash 22x range.
At this valuation, the market is clearly pricing in a strong recovery in FY26. To justify the premium, AEM will need to deliver substantial earnings growth, driven by:
1. Scaling contributions from new AI-focused customers
2. Continued support from Intel&rsquo s non-cancellable orders
3. Industry tailwinds in semiconductor test equipment demand
4. Improved margins from a favorable product mix
At $2.03, trading at a sector average P/E of about 20x would require EPS of about 10.2 cents in FY26 nearly double FY25&rsquo s 5.4 cents.
Without meaningful acceleration in FY26, the current valuation looks excessive relative to peers. Execution risk remains high, but if AEM delivers on growth expectations, the premium could be warranted. |
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melody88
Member |
25-Feb-2026 22:34
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https://www.theedgesingapore.com/capital/results/aem-reports-higher-fy2025-earnings-fy2026-revenue-growth-come-new-customer | ||||
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Sharelad
Member |
25-Feb-2026 22:09
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Hope AEM will secure the 3rd customer fast and continue to do even better.
Also good for Frencken too as it supplies AEM too. |
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Trainner
Master |
25-Feb-2026 20:47
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I believe yes......
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ruanlai
Elite |
25-Feb-2026 20:45
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AEM Reports 51.6% Increase in Profit Before Tax
Powered by Strong AI/HPC Growth & Resumes Dividend Payments ? Revenue for FY2025 reached S$399.3 million, up 5% year-on-year, driven by the ramp with its major Artificial Intelligence (?AI?)/High-Performance Computing (?HPC?) customer and continued adoption of its advanced test solutions. ? Profit before tax increased 51.6% year-on-year to S$21.3 million. PBT margin improved 1.6 ppts to 5.3%, due to higher revenue and thus improved operating leverage. ? The Board of Directors have recommended a final dividend of 1.3 Singapore cents per ordinary share for FY2025. ? AEM?s second AI/HPC customer contributed over 25% of Test Cell Solutions? segment revenue in FY2025, and is expected to grow in FY2026 to become the Group?s top customer by revenue. ? The Group is providing revenue guidance of S$460 million to S$510 million for FY2026, driven by the AI/HPC ramp, with TCS expected to contribute approximately 70% of the group?s overall revenue. |
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PQTPQK
Supreme |
25-Feb-2026 20:26
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Should gap up tomorrow?.
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Trainner
Master |
25-Feb-2026 20:24
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Technology companies supporting AI and datacenters will be benefited big time for next few years. AEM share should be good on Thursday.
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tongphlp
Supreme |
25-Feb-2026 19:53
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sounds like a scam......:)
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PQTPQK
Supreme |
25-Feb-2026 19:53
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Good ?
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spursfan
Supreme |
25-Feb-2026 19:42
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https://links.sgx.com/1.0.0/corporate-announcements/72ZMZGTGGZH1J2WE/876024_AEM_FY2025%20Press%20Release.pdf |
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wehuattogether88
Supreme |
25-Feb-2026 11:04
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For reference only: AEM Holdings (AEM SP) Trading buy range: S$2.01-2.02 Last price: S$2.05 Target price: S$2.25 Protective stop: S$1.93 Price rebounded from the base line support, keeping the uptrend intact. Conversion and base lines remain in a bullish crossover. MACD is bullish. These could increase chances of the stock price moving higher. The potential upside target is S$2.25. Stop loss could be placed at S$1.93. |
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