AEM Q1 net profit falls 63.1% to S$13.34 million after record year-ago period

MAINBOARD-LISTED AEM Holdings' first-quarter earnings plunged year on year, which the group attributed to a high revenue base in a business update on Monday.

Net profit fell by 63.1 per cent to S$13.34 million for the three months to March 31, while revenue was down 45.4 per cent to S$80.23 million, with AEM noting that its latest results followed a "record-breaking Q1 2020".

All the same, the electronics services provider now expects revenue of between S$460 million and S$520 million for the full year, after its takeover of contract manufacturer CEI Ltd.

The turnover will be weighted towards the second half of the year and into 2022, AEM said in a press release, citing the introduction of next-generation tools for the high-performance computing segment at a customer's high-volume manufacturing sites.

The acquisition of CEI has added end-to-end customisation and delivery capabilities, and AEM "aims to achieve meaningful revenue" from technical engagements with leading semiconductor companies in 2022, the group reported.

Net asset value stood at 93.9 Singapore cents a share, against 76.7 cents as at Dec 31, 2020, which AEM said came mainly on the consolidation of CEI as a subsidiary.

The board added that it is continuing its mergers and acquisitions programme, and that "the group continues to remain cautiously optimistic about its business and strives to capture new business opportunities as we navigate through these uncertain and volatile times".

AEM shed S$0.05, or 1.22 per cent, to S$4.05 on Monday, before the update.