Brokers' take

AEM Holdings | Buy (maintained) Aug 14 close: S$1.11 Target price: S$1.40 Maybank Kim Eng, Aug 14

Q2 bottomline rose 65 per cent year-on-year to S$15.7 million, largely driven by HDMT and STHI test handler (TH) sales to its key customer. First-half bottomline accounts for 65 per cent of our FY2019 forecast, surpassing our expectations.

As system-level test gains significance for its customer, we see a possibility of higher FY2019 revenue guidance from AEM.

Based on the latest updates, production ramp-ups for AMPS equipment for its memory customer, the hybrid project for its key customer, and the optical fibre test solution for Huawei are on track. The latter two contributions are not yet in our…