AEM (27 Feb 2021) - Price 4.03
INCOME STATEMENT
Revenue increased 60.6% despite Covid-19 pandemic. Staff cost also increased about 43%, this is due to previous acquisition on Mu-TEST. Overall results is good and expected.
BALANCE SHEET
Cash rich company - with 143Millions on hand
CASH FLOW
Cash flow - healthy, Company acquired CEI to expand the business.
Segmentation
From the table, company only make profit on ESS segment, other segment does not make any profit.
Geographical
Prospect
Based on WSTS, electronic sector will be growing and it will benefit to AEM as well.
My thought - Currently, whole world is suffered from IC shortage, in order to catch up, I believe electronic company will buy more SLT instrument and will benefit AEM. Besides that, acquired CEI to expand the business is a wise choice as it will definitely help AEM to grow.
Financial -
Dividend for FY2020 - 9.0cents ( 1st - 5.0 cents , 2nd - 4.0cents)
Dividend yield - 2.2%
EPS - 35.12cents
ROE - PAT / SHE = 97,587 /211,430 = 46%
P/E - 4.03/0.3512 = 11.47
Ordinary share 31 Dec 2020 - 277,888,030
For next year target, it should be at least - 520M + 140M = 660M
Estimated revenue for FY2021 - 520m x 1.06 + 140m x 1.03 = 550M + 144M = 694m
Estimated profit for FY2021 - (550m x 0.18+ 144m x 0.05) = 99m + 7.2m = 106m
Estimated EPS FY2021 - 106m / 277,888,030 = 38cents
