The company also expects to record sales of $135 million to $145 million in 1Q 2020.
Further to that, the company announced that it has activated its business continuity plan across its operations and supply chain.
The measures adopted included travel restrictions, compulsory temperature checking, advisory on personal hygiene, working on shifts at different sites or from home, and ordering materials from alternative sources.
“We reiterate our current add call and [target price] of $2.71, based on an unchanged Gordon growth-derived [price-to-book] multiple of 4.05 times,” CGS-CIMB analyst Willian Tng writes in a note dated March 20.
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On March 18, Malaysia imposed a movement control order (MCO) in the aim of slowing the spread of Covid-19.
This required the closure of all business premises, except for those supplying essentials, such as supermarkets and pharmacies. The MCO is expected to last until March 31.
CGS-CIMB notes that AEM’s key customer – Intel – is maintaining above-90% on-time delivery of its products from the latter’s factories worldwide.
As at 11.22 am, AEM was down 11 cents or 7% at $1.46, with 5.8 million shares changed hands.
