AEM Holdings reverses into earnings for 2HFY2024 from key customer pulling in systems from FY2025

Revenue for FY2024 decreased 21% y-o-y to $380.4 million, while revenue for 2HFY2024 remained steady at $206.8 million.

The group’s net asset value per share was 155 cents as at Dec 31, 2024. 

AEM Holdings says that 4QFY2024 revenues were up q-o-q due to its key customer pulling in systems from FY2025 into 4Q2025 for inventory management purposes. 

The group is providing a revenue guidance of $155 million to $170 million for the 1HFY2025, reflecting both lower revenue due to the pull-in to 2HFY2024 by the group’s key customer.

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This is balanced by the rapid revenue growth from the group’s new customer accounts deploying their high density burn-in solutions and active thermal solutions for system level test for advanced computing chips. 

The Test Cell Solutions (TCS) segment revenue of $131.2 million, accounting for 63.4% of group revenue in 2HFY2024 increased 31.4% vs. 1HFY2024, benefiting from sales to new customers gaining momentum along with pull-in orders from the key customer under the noncancellable, long-dated purchase order program for inventory management purposes.

The Contract Manufacturing (CM) segment revenue of S$71.0 million, accounting for 34.3% revenue in 2HFY2024 increased 1.0% vs 1HFY2024. AEM’s different segments—Life Science, Aerospace and Defence, Oil & Gas, and Industrials—helped provide revenue stability in the second half of the year, despite ongoing inventory digestion by its customers.

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As at Dec 31, 2024, the group’s total equity was at $492.3 million, and net asset value increased 4% to 155 cents reflecting the retained profits after tax for the year and trade receivables from the 4QFY2024 pull-in of orders from FY2025 by key customers. 

Inventories, which are predominantly related to the group’s noncancellable long-dated purchase order program with its key customer declined 11.2% to $296.8 million on the back of the pull-in. The group’s debt-to-equity ratio is 0.2 times.