AEM Holdings Ltd. (AWX) AI Stock Analysis

• Market Cap: S$482.60M
• Dividend Yield: N/A
• Average Volume (3M): 3.63M
• Price to Earnings (P/E): 35.4
• Beta (1Y): 1.60
• Revenue Growth: 4.60%
• EPS Growth: N/A
• Country: SG
• Employees: 2,372
• Sector: Technology
• Sector Strength: 84
• Industry: Semiconductors
• EPS (TTM): 0.01
• Shares Outstanding: 316,360,870
• 10 Day Avg. Volume: 2,108,050
• 30 Day Avg. Volume: 3,633,776
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: S$1.77
• Price Target Upside: 14.94% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 2

• Rating: 57 Neutral
• Price Target: S$1.50 ▼(-2.60% Downside)

AEM Holdings Ltd.'s overall stock score is primarily influenced by its stable financial management and strong balance sheet, despite revenue declines. Technical indicators suggest a lack of strong momentum, and the high P/E ratio indicates a relatively expensive valuation. The absence of a dividend yield further impacts its attractiveness.

Positive Factors

Customer Expansion

AEM is at the cusp of a multi-year rollout for new customers, with several customer wins announced in recent years.

Growth Opportunities

Industry megatrends like AI, 5G, and IoT are driving growth in test spend, leading to higher demand for AEM's offerings.

Technological Superiority

AEM retains technological superiority in system level test solutions, being a generation ahead of competitors.

Negative Factors

Foreign Exchange Losses

Earnings were negatively impacted by significant foreign exchange losses.

Revenue Decline

The contract manufacturing segment revenue fell 4.7% year-on-year amid lower demand from customers due to global trade uncertainties.

Single-Customer Risk

Key risks include single-customer concentration risk, geopolitical events, and prolonged slowdown.

AEM Holdings Ltd. Business Overview & Revenue Model

Company Description

AEM Holdings Ltd provides intelligent system testing and handling solutions for semiconductor and electronics companies in Asia, Europe, and North and Central America. It operates through Test Cell Solutions, Instrumentation, Contract Manufacturing, and Other segments. The company offers handling solutions comprising of system level, wafer level, and packaged level tests. It also provides test manipulators, test instruments, software, and other services, as well as TestPro multifunction cable tester, network service assistant, mixed mode multi-port vector network analyzer, and WideOptix-SR4 measurement system solutions. The company serves contract manufacturing, original equipment manufacturers, and outsourced semiconductor assembly sectors. AEM Holdings Ltd was incorporated in 2000 and is headquartered in Singapore.

How the Company Makes Money

AEM Holdings Ltd. generates revenue through the design, manufacture, and sale of its precision testing and handling equipment. Its key revenue streams include the sale of test handlers and fixtures, which are essential for the testing phases in semiconductor manufacturing. Additionally, the company provides consumables and maintenance services, creating recurring revenue opportunities. AEM Holdings Ltd. also benefits from strategic partnerships with leading semiconductor companies, which help drive demand for its products and services. The company's focus on innovation and quality enables it to maintain competitive pricing and appeal to a broad range of clients in the rapidly evolving technology landscape.

AEM Holdings Ltd. Financial Statement Overview

Summary

AEM Holdings Ltd. shows stable financial management with a strong balance sheet and positive net income despite revenue declines. However, negative free cash flow and declining operating cash flow highlight potential liquidity challenges.

Income Statement

AEM Holdings Ltd. has faced a decline in total revenue from $870.5M in 2022 to $380.4M in 2024, reflecting a significant revenue contraction. The gross profit margin has decreased over the years, indicating reduced profitability. However, the company has managed to turn net income positive in 2024, showcasing resilience and cost control efforts despite revenue challenges.

Balance Sheet

The company maintains a robust equity position, with an equity ratio of 72.1% as of 2024, indicating financial stability. The debt-to-equity ratio stands at a manageable 0.19, reflecting a conservative leverage strategy. However, total assets have decreased slightly, which could limit growth opportunities.

Cash Flow

AEM Holdings has experienced fluctuations in free cash flow, turning negative in 2024, which may constrain investments and operational flexibility. Operating cash flow has also decreased, highlighting potential liquidity concerns. The operating cash flow to net income ratio has worsened, suggesting operational challenges.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	379.64M	380.41M	481.28M	870.49M	565.46M	518.96M
Gross Profit	89.64M	97.61M	129.30M	273.66M	186.65M	203.47M
EBITDA	30.40M	43.12M	40.95M	185.23M	126.71M	122.25M
Net Income	-20.00M	11.44M	-1.24M	126.81M	91.95M	97.59M
Balance Sheet
Total Assets	674.52M	673.17M	707.53M	805.60M	710.50M	335.52M
Cash, Cash Equivalents and Short-Term Investments	79.02M	43.77M	101.85M	127.78M	216.18M	134.78M
Total Debt	95.65M	94.38M	126.36M	143.31M	81.27M	11.29M
Total Liabilities	196.31M	180.86M	233.14M	312.15M	307.98M	124.09M
Stockholders Equity	471.86M	485.70M	467.46M	485.05M	402.51M	211.43M
Cash Flow
Free Cash Flow	20.64M	-41.70M	14.39M	-58.91M	35.23M	81.05M
Operating Cash Flow	34.06M	-17.52M	40.17M	-31.43M	52.00M	86.29M
Investing Cash Flow	-8.09M	-8.79M	-20.09M	-38.44M	-85.22M	-29.77M
Financing Cash Flow	-17.34M	-31.78M	-46.91M	-19.28M	113.51M	-25.91M

AEM Holdings Ltd. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 1.54
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For SG:AWX, the sentiment is Positive. The current price of 1.54 is above the 20-day moving average (MA) of 1.50, above the 50-day MA of 1.53, and above the 200-day MA of 1.39, indicating a bullish trend. The MACD of <0.01 indicates Negative momentum. The RSI at 54.33 is Neutral, neither overbought nor oversold. The STOCH value of 73.17 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for SG:AWX.

AEM Holdings Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	61 Neutral	$35.51B	8.11	-11.05%	1.89%	8.55%	-8.72%
AWX	57 Neutral	S$482.60M	35.40	2.87%	―	4.60%	―
MCRNF	―	$196.42M	20.58	25.77%	3.16%	―	―
UMSSF	―	$788.80M	26.70	9.87%	―	―	―
JLB	64 Neutral	S$317.24M	32.58	7.60%	0.32%	47.45%	51.05%
MZH	64 Neutral	S$475.76M	36.50	3.50%	0.87%	22.66%	83.49%
E28	63 Neutral	S$597.93M	15.37	9.11%	1.84%	11.57%	0.89%

AEM Holdings Ltd. Corporate Events

AEM Holdings Transfers 1.3 Million Treasury Shares to Fulfill Contractual Obligations

AEM Holdings Ltd. has announced the transfer of 1,322,682 treasury shares from its Share Buyback Account to fulfill a contractual obligation. This transfer reduces the company’s treasury shares from 2,740,065 to 1,417,383, representing a decrease in the percentage of treasury shares against the total number of ordinary shares outstanding from 0.874% to 0.450%. The value of the transferred shares is S$4,427,123.37, indicating a significant financial transaction aimed at meeting the company’s contractual commitments.

AEM Holdings Appoints Samer Kabbani as New CEO

AEM Holdings Ltd. has appointed Samer Kabbani as its new Chief Executive Officer, effective July 28, 2025. Kabbani, who has been with AEM since 2020, previously served as President and Chief Technology Officer, where he played a key role in advancing the company’s test technology and expanding its product portfolio. His leadership is expected to drive AEM’s growth in AI-driven semiconductor innovation, leveraging their expertise in thermal technologies and automation to strengthen customer relationships and scale impact.

AEM Holdings Ltd. Ups Revenue Guidance for 1H2025

AEM Holdings Ltd. has revised its revenue guidance for the first half of 2025, increasing the expected range from S$155-170 million to S$185-195 million. This adjustment is due to an unexpected acceleration of orders from a key customer, reflecting positively on the company’s operational outlook and potentially strengthening its market position.

AEM Holdings Ltd. Hosts 2025 Annual General Meeting

AEM Holdings Ltd. conducted its Annual General Meeting on April 23, 2025, at the SingPost Auditorium in Singapore. The meeting was attended by the company’s board members, executives, and shareholders, with presentations on business updates and financial performance for the year ending December 31, 2024, delivered by the CEO, CTO, and CFO. The presentation slides were subsequently released to the Singapore Exchange Securities Trading Limited (SGX-ST).

AEM Holdings Collaborates with Intel Foundry to Enhance SLT and Burn-In Testing for Advanced Computing

AEM Holdings Ltd. announced a collaboration with Intel Foundry to expand access to their established SLT and Burn-In test ecosystem for advanced computing devices. This partnership aims to accelerate time-to-market for fabless customers by providing a comprehensive and integrated approach to testing, which includes device-specific configurable test units and advanced thermal control. The collaboration offers significant benefits such as faster time-to-market, reduced capital expenditure, and a U.S.-based engineering and production ecosystem, enhancing AEM’s industry positioning and providing strategic advantages to stakeholders.