Broker Name: CGS International Securities
Date of Report: February 26, 2026
Excerpt from CGS International Securities report.
Report Summary
- AEM Holdings Ltd reported strong FY25 performance, with revenue and net profit exceeding expectations and a significant turnaround in profitability, supported by a better revenue mix and operational improvements.
- The broker upgraded AEM to “Add” (from Hold), raising the target price to S\$3.14 (from S\$1.85), driven by robust FY26-28 earnings growth outlook, a positive shift in revenue guidance (S\$460m-S\$510m for FY26), and improved margins from its TCS (Test Cell Solutions) segment.
- Key catalysts include accelerated orders from major customers (notably Intel and a new AI/HPC customer), while downside risks remain from order delays, legal costs (due to an ongoing lawsuit), and macroeconomic uncertainties.
- Financially, AEM’s cash position improved, dividends resumed, and core EPS forecasts for FY26-27 were raised by nearly 50% as the company enters a new multi-year upcycle.
- ESG scores have improved due to better management, but customer concentration risk (Intel as a major client) persists, and regulatory/environmental compliance is maintained.
- Relative to peers, AEM is forecasted to deliver strong EPS growth and improved profitability, with a valuation potentially benefiting from increased market demand for semiconductor testing solutions.
Above is an excerpt from a report by CGS International Securities. Clients of CGS International Securities can be the first to access the full report from the CGS International Securities website: https://www.cgs-cimb.com
