This comes after AEM’s presentation at the second CGS-CIMB Tech/EV conference on March 29, where the company announced its Test 2.0 solutions, which lowers cost of testing and provides a more complete test coverage for the new generation of semiconductor chips.
CGS-CIMB Research analysts William Tng and Izabella Tan have kept their “add” call on AEM Holdings (SGX:AWX
) at an unchanged target price of $3.86, based on a potential FY2024 ending Dec 31, 2024 net profit recovery of 39.6% y-o-y by their estimate.
In the report, the analysts say that the target price is based on 9.5 times FY2024 P/E with a 0.5 standard deviation (s.d.) above its six-year average, given its sole supplier status with its major customer, Nestek Korea which it acquired a 53.3% stake in on Aug 12, 2022.
