Deliveries for this new order are slated to begin in FY2025 and to continue in the subsequent years, while no order value has been disclosed.
“In our view, this order win could be from the same customer that AEM previously announced on April 3,” writes Tng.
As the company did not issue any amendment to its 1HFY2024 revenue guidance of $170 million to $200 million issued at the time of its FY2023 results, the analyst expects the orders to be recorded from 2HFY2024 onwards.
Based on information from AEM’s FY2023 results presentation slides, Tng notes that the company could announce “further order wins”, with the agreement of customers.
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Despite the positive outlook, Tng awaits better revenue visibility from late-FY2024 into FY2025.
Downside risks noted by him include a further pushback in delivery timeline for customers’ equipment, weaker-than-expected recovery for the semiconductor industry and slower global economic growth, reducing customer demand for AEM’s contract manufacturing subsidiary.
Meanwhile, potential upside risks include its key customer taking earlier delivery of its equipment orders and new customers accelerating their equipment purchase orders.
As at 2.56 pm, shares in AEM Holdings are trading at four cents higher or 1.70% up at $2.39.
