Post Reply
1-3 of 3
AEI up 19% in afternoon trade, prompting SGX query
Shares of watch-listed AEI Corporation jumped 19 per cent on Thursday afternoon, prompting a query from the Singapore Exchange (SGX) about " unusual price movements" .The counter hit an intraday high of S$1.44 as at 1.58pm on Thursday, up 19 per cent or S$0.23, before getting the SGX query at 2.13pm. It was still trading at S$1.44 as at 3.02pm, with 1.6 million shares changing hands.
In its query, SGX asked AEI, which manufactures aluminium products, if it was aware of any information not previously announced concerning the group and its subsidiaries or associated companies which may explain the trading.
The bourse operator also asked the mainboard-listed company to confirm its compliance with listing rules, noting that this is the second query issued to the company in the past three months.
AEM remains ' best and biggest port' amid Covid-19 storm: KGI
Broker' s Calls
Uma Devi 14/05/2020, 3:26pm
SINGAPORE (May 14): As many companies settle for lower earnings and revenue due to the Covid-19 pandemic, AEM Holdings bucked the trend with its &lsquo best quarter on record&rsquo for 1QFY2020 ended March.
The provider of equipment systems solutions and manufacturing services booked earnings of $43.8 million, a 449% surge compared to the previous year. This came on the back of a 179% increase in revenue to $146.8 million from $52.7 million in 1QFY2019, due to increased orders from its main customer, Intel.
See: AEM books ' best quarter on record' as earnings surge 449% to $43.8 mil
KGI Research analyst Kenny Tan notes that the company&rsquo s profit margins improved to 24.6% from 16.3% last year due to the group&rsquo s ability to maintain high levels of production with a low fixed cost structure.
As far as 2020 is concerned, AEM is looking to garner sales within the range of $430 million and $450 million, a significant hike from its previous guidance rage of $360 million to $380 million. And Tan remains confident that this is highly likely.
&ldquo The only dark spots, if any, is the lack of contributions from subsidiary segments, in which no segmental breakdown was provided,&rdquo says Tan.
&ldquo Furthermore, none of 1QFY2020&rsquo s revenues were rushed production pull-ins from later quarters. AEM also confirmed that orders were still coming in,&rdquo he adds.
To be sure, Tan says the guidance raise reflects a &ldquo changing sentiment&rdquo due to continued orders from Intel. In addition, companies in the tech sector can generally remain defensive amid the Covid-19 pandemic.
&ldquo The tech sector, semiconductor industry included, has generally weathered the Covid-19 crisis fairly well,&rdquo shares Tan.
&ldquo Fellow test equipment peers have generally performed above expectations, confirming earlier theories that the disruption is mainly supply-side and not demand-side,&rdquo he adds.
Looking ahead, the brokerage is expecting a &ldquo conservative&rdquo net margin of 18.5% for the company, citing these to be fairly defensible for the time being.
As AEM ramps up production of the latest generation of test handlers, Tan opines that margins are likely to increase even more.
However, Tan remains cautious about the escalation of pandemic which could lead to supplier delays and order cancellations, as well as the possibility of competitors&rsquo R& D efforts weakening AEM&rsquo s market position.
KGI is reiterating its &ldquo outperform&rdquo call on AEM Holdings with a higher target price of $3.61 compared to the previous one of $2.60.
Year to date, shares in AEM have surged some 50.2% to trade at $3.15 as at 3.19pm.
https://www.theedgesingapore.com/capital/brokers-calls/aem-remains-best-and-biggest-port-amid-covid-19-storm-kgi
| Record Date and Time | 08/05/2015 17:00:00 |
| Ex Date | 06/05/2015 |
| Disbursement Details |
| Existing Security Details | |
| Security Debit Date | 11/05/2015 |
| Last Trading Date | 05/05/2015 |
| New Security Details | |
| Security not found | No |
| Fractional Disposition Method | Round down fraction to last full unit |
| Security Credit Date | 11/05/2015 |
| Distribution Ratio (New: Old) | 1:10 |