AEM Holdings Ltd. (AWX) AI Stock Analysis

• Market Cap: S$529.61M
• Dividend Yield: N/A
• Average Volume (3M): 4.11M
• Price to Earnings (P/E): 46.2
• Beta (1Y): 1.54
• Revenue Growth: -20.96%
• EPS Growth: N/A
• Country: SG
• Employees: 2,372
• Sector: Technology
• Sector Strength: 86
• Industry: Semiconductors
• EPS (TTM): N/A
• Shares Outstanding: 316,360,870
• 10 Day Avg. Volume: 5,443,160
• 30 Day Avg. Volume: 4,113,173
• 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$1.60
• Price Target Upside: -5.33% Downside
• Rating Consensus: Hold
• Number of Analyst Covering: 2

• Rating: 57 Neutral
• Price Target: S$2.00 ▲(18.34%Upside)

The overall stock score for AEM Holdings Ltd. is primarily influenced by its stable financial management and strong balance sheet, despite liquidity challenges. Technical analysis indicates bullish momentum, but overbought conditions suggest caution. The high P/E ratio and lack of dividend yield indicate overvaluation, adding risk for potential investors.

Positive Factors

Customer Expansion

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

Revenue Growth

1H25 revenue guidance raised by 17%, driven by pull-ins under a non-cancellable long-term purchase order from its key customer, suggesting no reversal of intent despite ongoing challenges at Intel.

Technological Superiority

AEM is a pioneer in providing SLT solutions and is currently around one generation ahead of its competitors.

Negative Factors

Earnings Performance

Earnings came in below expectations.

Industry Risks

Broader outlook remains subject to semiconductor tariffs and chip restrictions.

Profit Margin Concerns

AEM reported its 1Q25 earnings of S$3m (+43% yoy/-71% qoq) and revenue of S$86m (-9% yoy/-35% qoq), meeting 22% of our full year estimate. Net margin stays weak, at only 3.9%.

AEM Holdings Ltd. Business Overview & Revenue Model

Company Description

AEM Holdings Ltd. (AWX) is a leading provider of advanced precision testing and handling solutions catering primarily to the semiconductor and electronics industries. The company offers a comprehensive suite of products and services, including test handlers, test fixtures, and related consumables, which are pivotal in ensuring the quality and functionality of semiconductor devices. AEM Holdings Ltd. operates across various sectors, supplying its solutions to major semiconductor manufacturers globally.

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. 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
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	710.50M	673.17M	707.53M	805.60M	710.50M	335.52M
Cash, Cash Equivalents and Short-Term Investments	216.18M	43.77M	101.85M	127.78M	216.18M	134.78M
Total Debt	81.27M	94.38M	126.36M	143.31M	81.27M	11.29M
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: Positive
• Last Price: 1.69
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Negative
• STOCH: Negative

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 1.69 is above the 20-day moving average (MA) of 1.51, above the 50-day MA of 1.35, and above the 200-day MA of 1.35, indicating a bullish trend. The MACD of 0.08 indicates Negative momentum. The RSI at 77.45 is Negative, neither overbought nor oversold. The STOCH value of 88.36 is Negative, 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
5DD	67 Neutral	$253.04M	22.41	25.02%	3.23%	9.05%	41.96%
E28	66 Neutral	S$700.43M	18.87	8.89%	1.61%	6.93%	14.19%
558	65 Neutral	S$1.12B	26.22	9.67%	4.12%	-10.02%	-26.38%
JLB	64 Neutral	S$312.15M	28.13	8.66%	0.33%	43.32%	96.93%
MZH	64 Neutral	S$501.83M	65.25	2.02%	0.87%	15.39%	140.82%
Sector *	63 Neutral	$34.70B	4.89	-11.39%	1.66%	5.53%	-19.00%
AWX	57 Neutral	S$529.61M	46.17	2.40%	―	-20.96%	―

AEM Holdings Ltd. Corporate Events

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.

The most recent analyst rating on (SG:AWX) stock is a Sell with a S$1.09 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. 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.