AEM Holdings (AWX) Q4 2024 earnings summary

Executive summary

• Achieved FY2024 revenue of S$380.4M, a 21% decrease year-over-year, with PBT (excluding exceptional items) at S$19.8M, down 48% from FY2023, and EPS at 3.65 cents.

• 2H2024 revenue reached S$206.8M, up 19% sequentially from 1H2024, at the high end of revised guidance.

• 4Q2024 revenues surged 79% quarter-on-quarter to S$132.6M due to key customer order pull-ins.

• Focused on a four-point strategy: customer/market diversification, Test 2.0 technology leadership, operational excellence, and talent/culture.

• Appointed new CFO, Kwek You Cheer, effective January 2025.

Financial highlights

• FY2024 gross profit was S$97.6M, representing 25.7% of revenue, down 1.2 points year-over-year.

• 2H2024 PBT (excluding exceptional items) was S$14.1M, up 151% from 1H2024; FY2024 PBT was S$19.8M.

• 2H2024 net profit was S$10.8M (+1,211.9% vs. 1H2024); FY2024 net profit was S$11.6M.

• Diluted EPS improved to 3.65 cents from -0.40 cents in FY2023; NAV per share increased 4% to 155.2 cents.

• 2H2024 PBT margin (excluding exceptional items) was 6.8%; FY2024 PBT margin was 5.2%.

Outlook and guidance

• 1H2025 revenue guidance set at S$155M to S$170M, reflecting lower revenue due to 4Q2024 pull-in and new customer growth.

• Stronger 2H2025 anticipated, driven by customer device ramp-ups and contract manufacturing recovery.

• Revenue from TCS customers (excluding key customer) projected to exceed S$100M in FY2025.

• AI/HPC compute and memory businesses identified as key growth drivers.

• Noted pull-in of revenue to 2H2024 from a key customer, originally expected in FY2025.