AEM's net profit more than doubles on higher revenue

SEMICONDUCTOR play AEM Holdings on Monday reported a more than doubling in first-half net profit to S$55.3 million, from S$22.3 million a year ago. This came on the back of higher revenue, favourable product mix and operational cost-efficiency.

Revenue for the six months ended June 30 rose 81.7 per cent to S$273.7 million, as all its business segments recorded higher revenue due to an increase in sales orders from existing and new customers.

Earnings per share swelled to 20.15 Singapore cents for H1 2020, from 8.25 cents a year earlier.

The group proposed an interim dividend of 5 Singapore cents per share, representing a payout of 25 per cent for H1 2020, up from the 2 cents that it paid a year ago.

The dividend will be paid on Sept 11.

AEM's executive chairman Loke Wai San said: "We managed to minimise the impact from the Covid-19 related disruptions on our operations in the first half of 2020, and all our business segments achieved encouraging progress in growing our customer base."

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AEM also revised its FY20 revenue guidance upwards to the range of S$460 million to S$480 million; capital expenditure will remain at about S$4 million, and research and development spend will increase in the second half by S$4.2 million to support new projects for future years.