AEM Holdings Ltd. (AWX) AI Stock Analysis

• Market Cap: S$404.25M
• Dividend Yield: N/A
• Average Volume (3M): 1.67M
• Price to Earnings (P/E): 34.4
• Beta (1Y): 1.45
• Revenue Growth: -20.96%
• EPS Growth: N/A
• Country: SG
• Employees: 2,372
• Sector: Technology
• Sector Strength: 78
• Industry: Semiconductors
• EPS (TTM): N/A
• Shares Outstanding: 316,360,870
• 10 Day Avg. Volume: 1,377,010
• 30 Day Avg. Volume: 1,669,700
• PEG Ratio: 0.05
• Price to Book (P/B): 0.82
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 19.29
• 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$1.30
• Price Target Upside: 3.17% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 2

• Rating: 63 Neutral
• Price Target: S$1.50 ▲(19.05%Upside)

AEM Holdings Ltd. scores moderately due to stable financial management and positive technical indicators. The high P/E ratio suggests a premium valuation without dividend support. Liquidity issues highlighted in the financial performance could pose challenges unless addressed.

Positive Factors

Collaboration

Announced collaboration with Intel Foundry enables AEM to expand beyond serving Intel internal requirements to supporting a broader external customer base.

Revenue Guidance

The upward revision in 2H24 revenue guidance highlights the strong sales potential driven by long-dated purchase orders.

Technological Superiority

AEM retains technological superiority in system level test, being a pioneer in providing SLT solutions and currently around one generation ahead of its competitors.

Negative Factors

Earnings

Earnings came in below expectations.

Geopolitical Risks

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

Semiconductor Tariffs

The broader outlook remains subject to semiconductor tariffs and chip restrictions.

AEM Holdings Ltd. Business Overview & Revenue Model

Company Description

AEM Holdings Ltd. (AWX) is a leading provider of innovative semiconductor test solutions. The company operates primarily in the semiconductor industry, offering a range of products and services including system-level test handlers, test and measurement solutions, and related services. AEM Holdings serves a global clientele, primarily focusing on enhancing the efficiency and effectiveness of semiconductor manufacturing processes.

How the Company Makes Money

AEM Holdings Ltd. generates revenue through the sale of its semiconductor test solutions, which include both hardware and software components. The company's key revenue streams are derived from the sale of system-level test handlers, which are critical in ensuring the performance and reliability of semiconductor devices during the manufacturing process. Additionally, AEM offers test and measurement solutions that help manufacturers optimize their testing processes, thereby reducing costs and improving product quality. The company also provides related services, including maintenance and support, which contribute to its recurring revenue. Strategic partnerships with major semiconductor manufacturers and ongoing innovation in its product offerings are significant factors contributing to AEM's earnings.

AEM Holdings Ltd. Financial Statement Overview

Summary

AEM Holdings Ltd. demonstrates stable financial management with a sound balance sheet and positive net income despite revenue declines. However, negative free cash flow and declining operating cash flow indicate potential liquidity challenges that need to be addressed to support future growth and operations.

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
	EBIT
-5.65M	17.97M	13.75M	160.29M	111.82M	113.16M
	EBITDA
30.40M	43.12M	40.95M	185.23M	126.71M	122.25M
	Net Income Common Stockholders
-20.00M	11.44M	-1.24M	126.81M	91.95M	97.59M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
216.18M	43.77M	101.85M	127.78M	216.18M	134.78M
	Total Assets
710.50M	673.17M	707.53M	805.60M	710.50M	335.52M
	Total Debt
81.27M	94.38M	126.36M	143.31M	81.27M	11.29M
	Net Debt
-134.91M	50.60M	24.51M	15.53M	-134.91M	-123.50M
	Total Liabilities
307.98M	180.86M	233.14M	312.15M	307.98M	124.09M
	Stockholders Equity
402.51M	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: Neutral
• Last Price: 1.26
• 50DMA: Positive
• 100DMA: Negative
• 200DMA: Negative
• 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 Neutral. The current price of 1.26 is above the 20-day moving average (MA) of 1.24, above the 50-day MA of 1.19, and below the 200-day MA of 1.34, indicating a neutral trend. The MACD of 0.02 indicates Negative momentum. The RSI at 54.67 is Neutral, neither overbought nor oversold. The STOCH value of 67.59 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for SG:AWX.

AEM Holdings Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
558	74 Outperform	$926.49M	21.15	9.67%	48662.08%	-10.02%	-26.38%
E28	69 Neutral	S$499.70M	13.46	8.89%	2.23%	6.93%	14.19%
5DD	67 Neutral	S$219.67M	19.46	25.02%	5.32%	9.05%	41.96%
JLB	64 Neutral	S$313.84M	28.29	8.66%	0.32%	43.32%	96.93%
AWX	63 Neutral	S$404.25M	34.43	2.40%	―	-20.96%	―
MZH	62 Neutral	S$401.38M	50.00	2.02%	1.09%	15.39%	140.82%
Sector *	62 Neutral	$11.80B	10.08	-7.46%	2.99%	7.37%	-8.21%

AEM Holdings Ltd. Corporate Events

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).

The most recent analyst rating on (SG:AWX) stock is a Buy with a S$2.95 price target. To see the full list of analyst forecasts on AEM Holdings Ltd. stock, see the SG:AWX Stock Forecast page.

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.

The most recent analyst rating on (SG:AWX) stock is a Buy with a S$2.95 price target. To see the full list of analyst forecasts on AEM Holdings Ltd. stock, see the SG:AWX Stock Forecast page.

AEM Holdings Ltd. Achieves Key Milestones in 1Q2025 Amid Revenue Diversification

AEM Holdings Ltd. reported its first-quarter 2025 results, with revenue aligning with its first-half guidance at S$86.0 million and a profit before tax margin of 4.4%. The company successfully achieved customer acceptance of its AMPS-BI platform, transitioning multiple units into volume production, which supports its revenue diversification efforts. Despite a 35.1% drop in revenue from the previous quarter due to order pull-ins, AEM’s balance sheet remains strong, with significant reductions in financial liabilities. The company’s strategic move into high-volume manufacturing for a major AI and HPC customer is expected to bolster its market position.

The most recent analyst rating on (SG:AWX) stock is a Buy with a S$2.95 price target. To see the full list of analyst forecasts on AEM Holdings Ltd. stock, see the SG:AWX Stock Forecast page.

AEM Holdings Ltd. Announces Board and Strategy Committee Changes

AEM Holdings Ltd. has announced a change in its Board of Directors with the appointment of Dr. Yeo Yee Chia as an Independent Director, effective from May 13, 2025. This strategic appointment also includes Dr. Yeo Yee Chia joining the Strategy Committee, potentially influencing the company’s strategic direction and governance.