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Aem

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.

 

will also damage the reputation of SGX...where' s the corporate governance? 

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.

 

Loke said before he departed - Dont' ' Loke' Back..

chiachiawee      ( Date: 15-Jan-2024 11:26) Posted: AEM needs to get Loke Back. Looks like it has lost its helm since his departure. A possibility of slowly heading 2ish. cheers.

 

AEM needs to get Loke Back. Looks like it has lost its helm since his departure. A possibility of slowly heading 2ish. cheers.

 

absolutely.....trading halt soon?
 

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.

 

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.

 

 

what BS...AEM is no more a star...goner....

wehuattogether88      ( Date: 13-Dec-2023 10:44) Posted: Extract from UOB Kay Hian today for reference only: AEM Holdings (AEM SP) Trading Buy Range: S$3.33-3.34 Last price: S$3.37 Target price: S$3.70 Protective stop: S$3.18 Price moved and closed above the middle Bollinger band, aka the 20-day moving average yesterday. The RSI is rising from the oversold region, hinting at potential upside ahead. These could increase chances of the stock price moving higher. The potential upside target is S$3.70. Stop-loss could be placed at S$3.18.

 

Extract from UOB Kay Hian today for reference only:
AEM Holdings (AEM SP)
Trading Buy Range: S$3.33-3.34
Last price: S$3.37
Target price: S$3.70
Protective stop: S$3.18
Price moved and closed above the middle
Bollinger band, aka the 20-day moving
average yesterday. The RSI is rising from the
oversold region, hinting at potential upside
ahead. These could increase chances of the
stock price moving higher.
The potential upside target is S$3.70. Stop-loss
could be placed at S$3.18. 

 

EPF must be happy...unloading soon to payout bonus to M' sians...

Joelton      ( Date: 20-Nov-2023 13:39) Posted: AEM Holdings On Nov 10, the deemed substantial shareholding of Malaysia&rsquo s Employees Provident Fund Board&rsquo s (EPF) in AEM Holdings : AWX +0.92% crossed the 11 per cent threshold with a market transaction that saw 564,500 shares of the Catalist listed stock acquired at an average price of S$3.35 per share.   This followed on from the EPF&rsquo s deemed substantial shareholding in AEM Holdings crossing the 10 per cent threshold on Jun 21 and the 9 per cent level on Mar 2. Previously, the EPF&rsquo s deemed substantial shareholding in AEM Holdings crossed the 8 per cent mark in October 2022, exceeded the 7 per cent point in July 2022, and crossed the 6 per cent mark and 5 per cent substantial shareholder threshold in June 2022.   On Nov 9, AEM Holdings provided a Q3FY23 (ended Sep 30) business update and maintained the same FY23 guidance of between S$460 million and S$490 million provided with the H1FY23 results. The group has so far achieved revenue of S$387 million in the nine months of FY23 with a profit before tax margin of 2.6 per cent.   AEM Holdings attributed the slowdown in 9MFY23 revenue to overall sluggishness in the semiconductor industry, with most customers pushing out their capital expenditure related to testing to 2024 due to lower end demand across the industry.   On the strategic front, AEM has continued to invest in developing its suite of Test 2.0 innovations and capabilities. This has resulted in the group being awarded additional patents for its thermal capabilities in Q3FY23, and most of its customer engagements relate to next generation test requirements for advanced packaging chips used in high performance computing and AI.   The group also believes that the generative AI wave that gained momentum early this year, especially in the data centre space, is expanding to edge computing devices, increasing the overall transistor counts and architectural complexity.   It adds that these devices will face extreme test challenges that will translate into longer test times due to the increased test complexity and should provide long term tailwinds for the group&rsquo s Test 2.0 business. With regards to timing, the group believes demand for test solutions to address this market will be realised towards the end of 2024 and into 2025.   While ranking among the top 40 stocks by trading turnover this year, AEM Holdings has booked the twelfth highest net institutional inflows across the Singapore stock market.   Coinciding with the semiconductor downcycle, the past 12 months have seen the AEM Holdings&rsquo share price decline by 10 per cent. This week the price-to-book ratio of AEM Holdings declined to 2.0x, compared to the average five-year price-to-book ratio of 4.0x which coincided with a 240 per cent price return.

 

not good. why is EPF a malaysian company pumping $ but not our S' pore owned companies like Temasek? obvious EPF is in for the short term and will run road once their target is met...

Joelton      ( Date: 20-Nov-2023 13:39) Posted: AEM Holdings On Nov 10, the deemed substantial shareholding of Malaysia&rsquo s Employees Provident Fund Board&rsquo s (EPF) in AEM Holdings : AWX +0.92% crossed the 11 per cent threshold with a market transaction that saw 564,500 shares of the Catalist listed stock acquired at an average price of S$3.35 per share.   This followed on from the EPF&rsquo s deemed substantial shareholding in AEM Holdings crossing the 10 per cent threshold on Jun 21 and the 9 per cent level on Mar 2. Previously, the EPF&rsquo s deemed substantial shareholding in AEM Holdings crossed the 8 per cent mark in October 2022, exceeded the 7 per cent point in July 2022, and crossed the 6 per cent mark and 5 per cent substantial shareholder threshold in June 2022.   On Nov 9, AEM Holdings provided a Q3FY23 (ended Sep 30) business update and maintained the same FY23 guidance of between S$460 million and S$490 million provided with the H1FY23 results. The group has so far achieved revenue of S$387 million in the nine months of FY23 with a profit before tax margin of 2.6 per cent.   AEM Holdings attributed the slowdown in 9MFY23 revenue to overall sluggishness in the semiconductor industry, with most customers pushing out their capital expenditure related to testing to 2024 due to lower end demand across the industry.   On the strategic front, AEM has continued to invest in developing its suite of Test 2.0 innovations and capabilities. This has resulted in the group being awarded additional patents for its thermal capabilities in Q3FY23, and most of its customer engagements relate to next generation test requirements for advanced packaging chips used in high performance computing and AI.   The group also believes that the generative AI wave that gained momentum early this year, especially in the data centre space, is expanding to edge computing devices, increasing the overall transistor counts and architectural complexity.   It adds that these devices will face extreme test challenges that will translate into longer test times due to the increased test complexity and should provide long term tailwinds for the group&rsquo s Test 2.0 business. With regards to timing, the group believes demand for test solutions to address this market will be realised towards the end of 2024 and into 2025.   While ranking among the top 40 stocks by trading turnover this year, AEM Holdings has booked the twelfth highest net institutional inflows across the Singapore stock market.   Coinciding with the semiconductor downcycle, the past 12 months have seen the AEM Holdings&rsquo share price decline by 10 per cent. This week the price-to-book ratio of AEM Holdings declined to 2.0x, compared to the average five-year price-to-book ratio of 4.0x which coincided with a 240 per cent price return.

 

 

---

need to wait for the dust to settle ...
no rush to go in now 

 

Not sure Temasek buying more shares on market will do much to support the share price except in the very short term (unless they are doing a take-private of course). Such buying have any fundamental effect on the underlying issue which is the state of the semi market, which will recover in its own time.

 

Result quite jialat, more room to go south 
will wait for lower 
 

 

yah..bleeding like crazy...that' s why i wonder will they pump in more to support or have already given up...

MambaFinancial89      ( Date: 10-Nov-2023 13:32) Posted: They already pumped in at $4.74, $3.877, and $4. Severely underwater might be a good idea if they want to average down.  tongphlp      ( Date: 10-Nov-2023 12:20) Posted: will Temasek pump in $ to help?

 

They already pumped in at $4.74, $3.877, and $4. Severely underwater might be a good idea if they want to average down. 

tongphlp      ( Date: 10-Nov-2023 12:20) Posted: will Temasek pump in $ to help?  MambaFinancial89      ( Date: 10-Nov-2023 09:49) Posted: 9M23 took a hit from arbitration expenses recovery likely deferred till late 2024 9M23 revenue of S$387.0m (-48.2% yoy), largely in line with expectations 9M23 earnings of S$3.5m (-96.9% yoy), below our estimates even after accounting for one-off arbitration expenses of S$26.7m Worst is likely over, but recovery could be delayed till late 2024 Our Thoughts Worst is likely over, but recovery could be delayed till late 2024. Macros continue to be uncertain and overall industry capex in 2024 is likely to stay conservative (-0.1%) &ndash logic related capex (where AEM&rsquo s key customer is) will be down slightly (-3.4% yoy) whereas memory related capex will rebound (+12.4% yoy). Consensus estimates for Intel are not too far from the general narrative, with capex set to fall 6.7% yoy in 2023 and stay flattish at +1.0% yoy in 2024. Our views are largely congruent with AEMs expectations of a protracted period of lower tester utilisation rates which pushes out capex spend into late 2024. Nonetheless, Intels capex, while key, is not the only consideration. AEM is also driven by product cycles such as the ramp of new generation equipment. As yet, we do not expect new generation equipment ramp for the key customer in the next two years as capability requirements for the next two to three years has been met. Meanwhile, engagements with new customers continue to progress with ramps expected in 2H24.    We currently have a HOLD call with TP S$3.11, more updates to come after the analyst briefing on 10 November - Source: DBS

 

will Temasek pump in $ to help? 

MambaFinancial89      ( Date: 10-Nov-2023 09:49) Posted: 9M23 took a hit from arbitration expenses recovery likely deferred till late 2024 9M23 revenue of S$387.0m (-48.2% yoy), largely in line with expectations 9M23 earnings of S$3.5m (-96.9% yoy), below our estimates even after accounting for one-off arbitration expenses of S$26.7m Worst is likely over, but recovery could be delayed till late 2024 Our Thoughts Worst is likely over, but recovery could be delayed till late 2024. Macros continue to be uncertain and overall industry capex in 2024 is likely to stay conservative (-0.1%) &ndash logic related capex (where AEM&rsquo s key customer is) will be down slightly (-3.4% yoy) whereas memory related capex will rebound (+12.4% yoy). Consensus estimates for Intel are not too far from the general narrative, with capex set to fall 6.7% yoy in 2023 and stay flattish at +1.0% yoy in 2024. Our views are largely congruent with AEMs expectations of a protracted period of lower tester utilisation rates which pushes out capex spend into late 2024. Nonetheless, Intels capex, while key, is not the only consideration. AEM is also driven by product cycles such as the ramp of new generation equipment. As yet, we do not expect new generation equipment ramp for the key customer in the next two years as capability requirements for the next two to three years has been met. Meanwhile, engagements with new customers continue to progress with ramps expected in 2H24.    We currently have a HOLD call with TP S$3.11, more updates to come after the analyst briefing on 10 November - Source: DBS

 

Depends on what worst refers to. Presumably what is most important for most people is share price, but as to that who knows.

As for revenue, based even on company guidance 4Q will be worse than 3Q.

 

worst is likely over? the worst is yet to come...

MambaFinancial89      ( Date: 10-Nov-2023 09:49) Posted: 9M23 took a hit from arbitration expenses recovery likely deferred till late 2024 9M23 revenue of S$387.0m (-48.2% yoy), largely in line with expectations 9M23 earnings of S$3.5m (-96.9% yoy), below our estimates even after accounting for one-off arbitration expenses of S$26.7m Worst is likely over, but recovery could be delayed till late 2024 Our Thoughts Worst is likely over, but recovery could be delayed till late 2024. Macros continue to be uncertain and overall industry capex in 2024 is likely to stay conservative (-0.1%) &ndash logic related capex (where AEM&rsquo s key customer is) will be down slightly (-3.4% yoy) whereas memory related capex will rebound (+12.4% yoy). Consensus estimates for Intel are not too far from the general narrative, with capex set to fall 6.7% yoy in 2023 and stay flattish at +1.0% yoy in 2024. Our views are largely congruent with AEMs expectations of a protracted period of lower tester utilisation rates which pushes out capex spend into late 2024. Nonetheless, Intels capex, while key, is not the only consideration. AEM is also driven by product cycles such as the ramp of new generation equipment. As yet, we do not expect new generation equipment ramp for the key customer in the next two years as capability requirements for the next two to three years has been met. Meanwhile, engagements with new customers continue to progress with ramps expected in 2H24.    We currently have a HOLD call with TP S$3.11, more updates to come after the analyst briefing on 10 November - Source: DBS