AEM shares rise on Huawei contract news

Singapore

SHARES of AEM Holdings rose in active trading on Wednesday, after the company announced that its test solution had been selected by telecom company Huawei for use in qualifying links in its 5G network.

The tech solutions provider said on Tuesday that it had developed a test solution in collaboration with China Electronics Technology Group Corporation No 23 Research Institute for qualifying high-performance, short-reach cabling links for Huawei's 5G backhaul network. It will deliver the solution in 2019.

AEM's executive chairman Loke Wai San said the advanced test technology and ability to customise the solution to Huawei's needs were factors that helped get its test solution selected. "The combined advantage of AEM's high performance communications cabling test system and our expertise in automating the test environment will enable us to achieve the stringent quality and cost targets for 5G component testing."

CGS-CIMB analyst William Tng, who downgraded the stock from "add" to "reduce" on July 31, said he is maintaining his call on the stock for now, pending further news.

AEM shares closed at S$0.82, up S$0.025 or 3.1 per cent, with 31 million shares changing hands.