AEM - Q4 2020 / Full Year 2020

 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