Hot stock: AEM Holdings surges 10% after H1 profit more than doubles

SHARES in AEM Holdings climbed over 10 per cent on Tuesday morning, after the semiconductor play on Monday reported a more than doubling in its first-half net profit to S$55.3 million for the six months ended June 30.

As at 9.40am, AEM shares were trading at S$4.03, up S$0.37 or 10.1 per cent. Some 10.2 million shares changed hands, making it one of the most heavily traded counters on the Singapore bourse in the early session of trading.

The counter extended gains as at 10.56am on Tuesday, advancing 12 per cent or S$0.44 to S$4.10, and has now surpassed its 52-week high of S$3.81.

AEM's H1 results came on the back of higher revenue, favourable product mix and operational cost-efficiency.

Revenue for the half-year period 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 has proposed an interim dividend of five Singapore cents per share, representing a payout of 25 per cent for H1 2020, up from the two Singapore cents that it paid a year ago. The dividend will be paid on Sept 11.

Last month, Bloomberg reported that AEM - which counts US tech giant Intel as its main customer - had surged 53 per cent this year to become the top performer in the 107-member FTSE ST All-Share Index, the broadest measure for Singapore stocks.

Bloomberg said then that "Singapore hottest stock" is set to continue its winning streak, as it benefits from emerging trends in the semiconductor industry.