In addition, Tng says AEM still has leeway to improve profitability. This includes substituting materials used in the production of TH with less costly alternatives, improving production efficiency as well as using its lower-cost Penang plant when it is becomes operational by end 4Q17.
SINGAPORE (Aug 18): CIMB is maintaining its “add” on AEM Holdings with $3.43 target price given management remains confident of a multi-year ramp-up of its business with its key customer after attending the group’s 2Q17 results briefing.
“We understand that in 2Q17, AEM’s catchup orders for consumables were in the $10 million range. This arose as some equipment – Test Handler (TH) – ordered by its customer excluded such consumables. However, some were indeed re-orders for consumables,” says analyst William Tng in a Thursday report.
