Broker: CGS International
Date of Report: April 25, 2026
Excerpt from CGS International report.
Report Summary
- Stock: AEM Holdings Ltd (AEM.SI / AEM SP)
- Action: Add (Reiterate Add recommendation)
- Target Price: S\$10.15 (raised from S\$4.86)
- Current Price: S\$6.06 (at time of report)
- Upside: 67.5%
- Key Idea: The broker expects AEM to enter a new earnings upcycle (FY26-28F) driven by a more diversified customer base, including new AI/HPC and memory customers, and a strategic partnership with ASE Technology. Earnings per share (EPS) CAGR for FY25-28F is forecast at 83.0%.
- Highlights:
- Re-rating to sector average P/E (41x FY27F EPS) justified by higher earnings growth and diversification.
- Net profit margin expected to improve to 10.0%, 13.1%, and 14.7% in FY26F, FY27F, and FY28F respectively.
- 1Q26F net profit expected to quadruple year-on-year, supporting further share price re-rating.
- Key risks: Customer order delays, cancellations, global economic slowdown, ongoing competitor lawsuit.
- Implications: Investors are advised to Add AEM Holdings Ltd for exposure to the new growth cycle with a target price of S\$10.15. Catalysts include stronger earnings, new customer wins, and earlier deliveries from key clients.
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
