SINGAPORE - AEM ( 11 Jul 2020) -EP 3.6

SINGAPORE - AEM (11 Jul 2020, Price - SGD 3.24)

Core business

1) EQUIPMENT SYSTEMS SOLUTIONS (ESS)

• Integrating precise high-speed motion, innovative mechanical design, advanced programmable logic control, sophisticated graphical user interface design, and reliable compliance communication    protocols. Solutions include high-density and modular test handlers, wafer handling systems and hot spot test handlers.

2) SYSTEM LEVEL TEST & INSPECTION (SLT-i)

• SLT solutions enable the testing of complex devices in their real end-user environment including extreme temperature ranges.

3) MACHINE VISION SOLUTIONS THROUGH IRIS SOLUTION

• Development of software and algorithms for machine vision, image processing, product handling control; 
• Optical and lighting design and assembly;
• Mechanical and electronic design and assembly; and
• AI and Machine Learning algorithms to expedite recognition training and to improve detection accuracies.

4) APPLICATION-SPECIFIC WAFER PROBERS AND MICRO-ELECTRO-MECHANICAL            SYSTEMS TESTING SOLUTIONS THROUGH AFORE OY (MEMS)

• Offers test solutions from the R&D phase to high volume production and system-level testing which enable manufacturers to achieve the lowest cost-of-test, reduced time to market, effective process cycle, accurate stimulus and high production yields. 

5) TEST AND MEASUREMENT SOLUTIONS (TMS)

• Test solutions includes Vector Network Analyzers (VNA) and portable network cable testers; for testing, validating, certifying and troubleshooting of communication cables

Financial Highlight (FY 2019)

In financial year 2019, AEM did pretty well in the business. This is because in year 2018, AEM spent 13.2million in acquisition and now it generates more revenue in 2019. 

Let's look at 2020 Quarterly Report. (Q1 2020)  

The 1st look at the diagram, i'm like ..... what????!!!! 

Revenue 1Q2020  - 146.8m. Is like 45% of 2019 Revenue and it achieved in 1Q 2020. 

To be conservative - 2020 Q1 Revenue x 3 (instead of 4) , we got 440.4m and PBT x 3 = 131.4m.

Revenue (Segment)

For the above diagram, we know that ESS is the segment that generated the most revenue and SLT-I and MEMS are seeing drop in Revenue.

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Overall :

EPS for Q1 = 13.27 x 3 (Quarter) = 39.81 

P/E trailing = 3.24 / 0.3981 = 8 

ROE = NET INCOME / SHAREHOLDER EQUITY = (3x36134) / 134336 (2019) = 80%

With AI and 5G trend, AEM will be benefited from this.