AEM Holdings (AWX) Q2 2024 earnings summary

Executive summary

• Achieved 1H2024 revenue guidance with S$173.6M, despite a 37% YoY decline mainly due to weaker demand from a key semiconductor customer and prolonged inventory digestion in the industrial sector.

• Appointed new CEO, Amy Leong, effective July 2024, to drive growth in semiconductor test and technology.

• Launched PIXLTM Intelligent Thermal Control Technology, expanding deployment with a major fabless customer.

• Secured initial S$20M order for AMPS-BI systems, with delivery and ramp expected in late 2024 and 2025.

• Gross profit margin decreased to 25% from 30% in 1H2023, reflecting lower revenue and an unfavorable product mix.

Financial highlights

• Revenue for 1H2024 was S$173.6M, down 37% YoY.

• Profit before tax (excluding exceptional items) was S$5.6M, down 81% YoY; reported profit before tax was S$1.0M, down 96% YoY.

• Net profit was S$0.8M, down from S$19.7M in 1H2023.

• Cash position at S$79.0M as of June 2024, compared to S$101.8M at December 2023.

• Debt/Equity ratio improved to 0.2x from 0.3x at December 2023; financial liabilities reduced to S$95.7M from S$126.4M.

Outlook and guidance

• Management expects 2H2024 revenue between S$160M and S$180M.

• Significant new business growth anticipated in 4Q2024, driven by AMPS-BI system orders and new customer business.

• Further ramp in AMPS-BI deliveries projected through 2025.

• No interim dividend declared for 1H2024 to prioritize investment in new customer programs.