On 12 March 2018, bought 700 shares of AEM at $7.36 each.
AEM has a good run up on its share price since last year Jan 2017 from $0.60 to current $7.59 which reflects the great bull run of Semi Conductor Industry related stocks since March 2017 till now.
The proposed 3 bonus shares for 1 existing share had received approval from SGX-ST on 13 March 2018.
My AEM shares will become 2800 after the bonus shares is issued but the bonus share will not be entitled to the final dividend $0.065.
Total dividend FY2017 is $0.12 per share equates to AEM 25% NPAT which means AEM has more room to increase its dividend payout.
So what is the catalyst that is propping AEM into new highs?
AEM High Density Modular Testing Machine
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AEM provides handling & test solutions to microprocessors, high speed communications, Internet of Things & Solar Cells manufacturers in the world.
And the strategy is to works with its client's and develop the product that is specifically caters for them & in this case, the new generation test handlers equipment (HDMT) which AEM had collaborate with Intel for many years had bears fruit.
Intel has been ordering the new HDMT machine from AEM and the sales order continue to grow at a fast pace. And currently no competitors had come up with a similar machine that can rival with AEM.
The table will turn if any of AEM competitors came up with a similar machine though the possibility is low at the moment but the threat can be real in the near future.
The non recurring revenue will be its machines & tools , but most significantly the
recurring revenue from the test handler equipment will be its consumables item such as kits , spare part & services which constitutes half of AEM revenue.
So we are looking not just the number of machine sold but the after sales service which will boosts AEM profits and the more the machine AEM sells ,the bigger the recurring income from after sales service.
The profit guidance FY2018 released by AEM shows that the profit before taxes will be at $42 million.
However, 80% of AEM revenue comes from Intel, so the reliance on a single customer is very risky.
• MEMS test handlers and test cells
IRIS Solution’s customized vision systems have been integrated with automated optical wafer inspection systems, die bonders and semiconductor devices inspection systems that have been delivered globally including to some of the world’s largest electronics and semiconductor companies
InspiRain Technologies Pte Ltd
A provider of network infrastructure test and measurement solutions
AEM has a good run up on its share price since last year Jan 2017 from $0.60 to current $7.59 which reflects the great bull run of Semi Conductor Industry related stocks since March 2017 till now.
The proposed 3 bonus shares for 1 existing share had received approval from SGX-ST on 13 March 2018.
My AEM shares will become 2800 after the bonus shares is issued but the bonus share will not be entitled to the final dividend $0.065.
Total dividend FY2017 is $0.12 per share equates to AEM 25% NPAT which means AEM has more room to increase its dividend payout.
So what is the catalyst that is propping AEM into new highs?
AEM High Density Modular Testing Machine
==================================
AEM provides handling & test solutions to microprocessors, high speed communications, Internet of Things & Solar Cells manufacturers in the world.
And the strategy is to works with its client's and develop the product that is specifically caters for them & in this case, the new generation test handlers equipment (HDMT) which AEM had collaborate with Intel for many years had bears fruit.
Intel has been ordering the new HDMT machine from AEM and the sales order continue to grow at a fast pace. And currently no competitors had come up with a similar machine that can rival with AEM.
The table will turn if any of AEM competitors came up with a similar machine though the possibility is low at the moment but the threat can be real in the near future.
The non recurring revenue will be its machines & tools , but most significantly the
recurring revenue from the test handler equipment will be its consumables item such as kits , spare part & services which constitutes half of AEM revenue.
So we are looking not just the number of machine sold but the after sales service which will boosts AEM profits and the more the machine AEM sells ,the bigger the recurring income from after sales service.
The profit guidance FY2018 released by AEM shows that the profit before taxes will be at $42 million.
However, 80% of AEM revenue comes from Intel, so the reliance on a single customer is very risky.
AEM Acquisitions
================
AEM begin its acquisitions spree to deepen its capabilities and enhances its product range and services by buying over 3 companies. Below are the info from AEM corporate announcements.
Except for InspiRain, its business is in non semiconductor industry whereas Afore & IRIS are in semiconductor industry.
Afore Oy
A MEMS test equipment company located in Finland that offers test handling solution mainly for Automotive, Industrial and Consumer applications
• MEMS test handlers and test cells
• Tailored equipment and R&D services for MEMS industry
• Small scale testing service
IRIS Solution Pte Ltd
Research, development and integration of machine vision solutions.IRIS Solution’s customized vision systems have been integrated with automated optical wafer inspection systems, die bonders and semiconductor devices inspection systems that have been delivered globally including to some of the world’s largest electronics and semiconductor companies
InspiRain Technologies Pte Ltd
A provider of network infrastructure test and measurement solutions
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