AEM 'cautiously confident' about sales despite coronavirus disruption to deliveries

AEM Holdings, which provides advanced chip testing solutions, is "cautiously confident" that its sales for the first half of 2020 will be at an all-time high.

This is despite shifts in the delivery of its sales orders resulting from the novel coronavirus situation, the mainboard-listed firm said in a regulatory update on Thursday night. 

It is also expecting a record quarter for the three months ending March 31, with sales to come in between S$135 million and S$145 million.

AEM's full-year sales guidance of S$360 million to S$380 million as provided on Feb 25 remains unchanged.

In view of the Covid-19 outbreak, the company has activated its business continuity plan across its operations and supply chain.

For instance, it has been ordering materials from alternative sources and implementing travel restrictions, AEM said.

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Its employees are also working in shifts, at different sites or from home.

AEM's corporate headquarters is located in Singapore. The company also has manufacturing facilities and field engineering service sites in Malaysia's Penang, Chengdu and Suzhou in China, Chandler and Oregon in the US, Vietnam's Ho Chi Minh City and Finland's Lieto, according to its 2018 annual report.

Malaysia's nationwide lockdown will last from March 18 to March 31, to curb the spread of the novel coronavirus. Under the movement control order, all Malaysians are banned from travelling abroad and tourists are denied entry, and the majority of business, government and private premises will be closed.

China locked down several major cities at the height of the outbreak in the country. On Thursday, China reported no new domestic transmissions for the first time.

AEM shares closed at S$1.37 on Thursday, down S$0.12 or 8.1 per cent.