Broker: CGS International
Date of Report: March 23, 2026

Excerpt from CGS International report.

Report Summary
• AEM Holdings Ltd announced a strategic partnership with Taiwan’s ASE Technology, raising S\$12m via private placement and granting ASE up to 28.1m warrants tied to revenue performance. This collaboration aims to combine AEM’s semiconductor test technologies with ASE’s manufacturing scale, focusing on the fast-growing AI and HPC markets.
• The partnership is expected to help AEM diversify its customer base and potentially restore its net profit to previous peaks (S\$92m–98m annually) by FY28–30, driven by new customers and deeper integration with ASE.
• The analyst reiterates an “Add” rating with a higher target price of S\$4.86, noting strong expected earnings growth (3-year EPS CAGR of 60%), but highlights risks such as customer order delays, economic slowdown, and an ongoing lawsuit from a competitor.
• ASE can exercise the warrants if it generates S\$30m–50m in revenue for AEM within six months, potentially leading to further upside.
• AEM’s financials show a rebound in revenue and net profit from FY26 onwards, supported by new market opportunities and a more diversified customer base.
• The report also discusses AEM’s ESG practices, including staff training and compliance with environmental regulations, with an LSEG ESG score of “C”.

Above is an excerpt from a report by CGS International. Clients of CGS International can be the first to access the full report from the CGS International website: https://www.cgs-cimb.com