AEM Holdings has reported record figures for its quarterly revenue and profit before tax in its business update for the 1QFY2022 ended March.
During the quarter, AEM’s revenue surged 226.4% y-o-y to $261.9 million, while profit before tax (PBT) surged 212.1% y-o-y to $49.7 million.
The revenue growth was mainly driven by the strong uptake in AEM’s new generation equipment and tools, as well as the consolidation of CEI, which the group acquired in 1HFY2021.
The higher revenue was also boosted by the demand for semiconductors that were used to power the automation and digitalisation industries, says AEM in its business update.
The higher PBT increased in tandem with the revenue growth.
PBT margin, however, fell by 0.8 percentage points to 19.0%.
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Net profit surged 205.6% y-o-y to $40.8 million, while net profit margin (NPM) fell by 1.0 percentage points to 15.6%.
As at March 31, AEM’s cash and cash equivalents fell by 23.2% y-o-y to $166.0 million due to higher working capital used to fund the higher business activity.
AEM’s total assets increased to $790.4 million from $710.5 million as at March 31.
Net asset value (NAV) per share increased to 142.7 cents from 130.0 cents.
In its outlook statement, AEM says it sees the new normal continuing to create strong demand for semiconductor chips for mission-critical applications.
“Advanced packaging and heterogeneous integration will continue to power the automation, electrification of automotive industry, and digitalisation industries as the global economy recovers,” says the company.
“The increasing complexity of semiconductor chips will continue to propel the demand for System Level Testing solutions. Therefore, the group strives to leverage on this industry trend and constantly strengthen its capabilities to support next-generation applications through superior testing solutions,” it adds. “The group will continue to invest in research and development (R&D) activities and capabilities to address the needs of our customers and to stay ahead of competition through innovation.”
AEM’s CEO Chandran Nair says he remains “optimistic” on AEM’s business prospects and that he strives “to expand its market presence globally”.
“While the growth in semiconductor test content provides positive momentum, we continue to remain mindful of the supply chain challenges and the geopolitical situation. We have taken a proactive inventory management approach, which include working very closely with our suppliers and building up a prudent level of inventory holdings which are expected to be utilised for production,” he adds.
Shares in AEM closed 2 cents higher or 0.42% up at $4.84 on May 5.
