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AEM drops after CEO quits
Semiconductor player says Amy Leong will be CEO from Jul 1
SHARES of AEM dropped by as much as 6.6 per cent as at the Friday (May 31) midday trading break, on the back of the resignation of its current chief executive Chandran Nair, which was announced the day before.
As at 12.32 pm, the counter was trading down S$0.13 at S$1.83, with 5.1 million shares having changed hands. The last time it closed at this level was April 2020.
The semiconductor player said after the market close on Thursday that Nair, who became CEO in 2020, had resigned to &ldquo pursue other personal interests&rdquo . His resignation takes effect on Jun 30.
AEM appointed Amy Leong as deputy CEO upon Nair&rsquo s resignation, ahead of her taking on the CEO role from Jul 1.
She was most recently senior vice-president and chief commercial officer at Nasdaq-listed semiconductor supplier FormFactor. She was also a board member of Nasdaq-listed and US-based Skywater Technology Foundry.
The latest earnings results of semiconductor companies show a continued distress of the sector, weighing on their stock performances.
On May 8, AEM reported a Q1 net profit of S$2.4 million, 85 per cent lower than that of the year before. The company noted then that the industry was in a prolonged cyclical downturn.
AEM Holdings
On May 20, AEM Holdings : AWX 0% independent director Andre Andonian bought 207,000 shares at S$1.87 per share. With a consideration of S$504,911, this acquisition took his direct interest in the provider of global semiconductor and electronics test solutions to 0.09 per cent.
This is Andonian&rsquo s first acquisition of AEM Holdings shares since he joined the board in July 2022. He has over 30 years of experience in consulting companies across the semiconductor, industrial and electronics, automotive and assembly, and aerospace and defence industries on strategic, operational and organisational topics.
He also has extensive experience in transforming companies into global leaders and in the assessment and development of talent.
He has held multiple executive leadership roles across Europe, the US and Asia during his 34 years at McKinsey & Company, such as managing partner of McKinsey Japan, Global and Americas leader of McKinsey&rsquo s advanced industries sector, and most recently, the managing partner of McKinsey Korea. He currently supports McKinsey & Company as special adviser/senior partner emeritus in North Asia.
AEM Holdings maintains its revenue guidance for H1FY24 (ending Jun 30) of S$170 million to S$200 million, and will provide H2FY24 guidance in its H1FY24 earnings press release.
Suddenly up almost 20c , contract win or manipulation?
AEM rises with contract win
SHARES of mainboard-listed AEM : AWX +9.26% jumped as much as 13.4 per cent on Wednesday (Apr 3) after announcing a contract win for its automated burn-in (ABI) test system.
The counter reached a high of S$2.45 at 9.53 am, up S$0.29. By 10.52 am, shares of AEM were trading 10.7 per cent or S$0.23 higher at S$2.39, with 6.7 million shares changing hands.
On Wednesday, AEM, which provides advanced chip-testing solutions, announced a contract win from a &ldquo major fabless provider&rdquo of high-performance compute and artificial intelligence (AI) semiconductor chips.
The company&rsquo s ABI test system was selected by the customer as a plan-of-record solution to address the latter&rsquo s emerging test needs for a new device roadmap.
&ldquo This win further expands our industry leadership in advanced, high parallel burn-in solutions and proves that we provide value-added, full turnkey solutions to enable our customers to shift towards Test 2.0 in a cost-effective manner,&rdquo said AEM chief executive Chandran Nair.
The systems test products by subjecting them to extended periods of operation under stressful conditions, typically to detect potential defects or weaknesses before they reach the end consumer.
AEM said it will commence delivery of the system in FY2024, with further deliveries expected in the following years.
Maybank report
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| Bright sparks appearing U/G BUY |
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| AEM announced a high volume order (> 5% of revenue) win for its automated burn-in solution by a major fabless provider of high-performance compute and AI semiconductor chips. We expect its core customer to increase orders in 2H24E based on our channel checks as other suppliers are getting encouraging forecasts for 2H24E. We raise our FY24E revenue and PATMI by 24% and 50%, which increases our TP to SGD2.78 based on an unchanged blended 15x FY24/25E. We also upgrade our call to BUY from HOLD. |
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I think too heavily shorted, so shot up due to short covering
nissan ( Date: 04-Apr-2024 07:47) Posted:
| Suddenly up almost 20c , contract win or manipulation? |
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Suddenly up almost 20c , contract win or manipulation?
Can start Accumulate ...
Dyodd
Looks like she may go further South
AEM faces weak outlook on key customer Intel&rsquo s revenue guidance
SEMICONDUCTOR test solutions provider AEM Holdings may be in for a tough year, analysts said, after major customer Intel provided guidance that fell short of expectations.
Chipmaker Intel said on Thursday (Jan 25) that its revenue for the first quarter of this year is likely to be between US$12.2 billion and US$13.2 billion.
The projection was below the US$14.15 billion estimate of data provider LSEG (formerly Refinitiv). Shares of US-listed Intel fell more than 5 per cent immediately after the announcement, and continued their descent on Friday.
Sales of PCs and laptops, which Intel chips are mostly used for, have slowed.
Intel&rsquo s weak forecast comes shortly after AEM reported an estimated S$17.9 million to S$25.1 million shortfall in its inventory on Jan 14, following an internal stocktaking exercise.
&ldquo The company, in consultation with its independent external auditors, has made a determination that the entirety of the S$18 million to S$25 million will be adjusted down in Q4 FY2023,&rdquo AEM said on Jan 22.
DBS Group Research, in a note to clients on Friday, said the overhang from the inventory shortfall incident and the lack of strong catalysts are likely to keep the stock &ldquo range bound&rdquo for now. The brokerage has a &ldquo hold&rdquo call on AEM shares with a target price of S$3.
Lim & Tan Securities also issued a note on Friday highlighting the potential negative impact of the Intel news.
Given the &ldquo uncertain earnings trajectory&rdquo , Lim & Tan said, the stock price is &ldquo not attractive enough to entice bottom-fishing yet&rdquo .
By
Nicolas Van Broekhoven
- 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.
wehuattogether88 ( Date: 19-Jan-2024 10:18) Posted:
| I think the AEM mgt must do something to stop the slide of their companys share price. |
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yah..they should all quit and leave....else quite disgraceful...this stock has fallen from grace
wehuattogether88 ( Date: 19-Jan-2024 10:18) Posted:
| I think the AEM mgt must do something to stop the slide of their companys share price. |
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I think the AEM mgt must do something to stop the slide of their companys share price.
Camp at $2.. sooner or later
$2.56 TP coming
tongphlp ( Date: 18-Jan-2024 15:56) Posted:
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.
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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.
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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.
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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.
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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.
Will we see a repeat?.....
Former AEM-Evertech CEO charged with corruption
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.
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