AEM Holdings (AWX) Q2 2024 earnings summary

Executive summary

• Revenue for 1H2024 was S$173.6 million, down 37% year-over-year, mainly due to weaker semiconductor demand and industrial sector inventory digestion.

• Profit before tax (excluding exceptional items) was S$5.6 million, down 81% YoY; net profit dropped 96% YoY to S$0.8 million.

• Amy Leong was appointed CEO effective July 2024, bringing over 25 years of semiconductor industry experience.

• Launched PIXLTM Intelligent Thermal Control Technology and secured an initial S$20M+ order for AMPS-BI systems, with deliveries expected in late 2024 and 2025.

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

Financial highlights

• Revenue for 1H2024 was S$173.6M, down 37% YoY; gross profit margin decreased to 25% from 30% in 1H2023.

• Profit before tax (excluding exceptional items) was S$5.6M, net profit S$0.8M, and basic EPS 0.29 cents.

• Cash and cash equivalents at S$79.0M as of June 2024, down from 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.

• Net asset value per share at 151.0 cents, nearly flat from December 2023.

Outlook and guidance

• Management expects 2H2024 revenue between S$160M and S$180M, with significant new business growth anticipated in 4Q2024, driven by AMPS-BI system orders.

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

• No interim dividend to support continued investment in customer programs.