AEM raises FY2017 profit guidance; expects FY2018 to outperform FY2017

AEM Holdings said on Monday that it expects its operating profit before tax for the 2017 financial year to reach between S$35 million and S$37 million, up from a previous guidance of at least S$32 million.

The group's 2017 revenue guidance of at least S$215 million remains unchanged.

On Dec 21 last year, AEM announced that it had received sales orders worth S$100 million for delivery in the first half of 2018.

"Based on the sales orders received so far and the positive outlook, the group expects FY2018 to outperform FY2017 with FY2018 revenue and operating profit before tax reaching at least S$255 million and S$42 million respectively," the group added in its profit guidance on Monday.

AEM, which reports fourth-quarter results on Feb 23, is said to be the sole supplier for chipmaker Intel's latest test handler.

Group executive chairman Loke Wai San said: "We are encouraged with the sales momentum AEM has shown over the past 15 months. The demand for our High Density Modular Test handler from our key customer has grown since its commercialisation."

AEM shares jumped 23 Singapore cents or 6.76 per cent to finish at S$3.63 on Monday before a trading halt was called at 12.27pm.