AEM Holdings

AEM Holdings - From TA point of view, it is rather bearish as the current price of $6.03 is staying below its 20 day MA & also the 50 days MA.

MACD & RSI has been trending down, which may likely indicate the price may continue to see further weakness.

Likely to go down to retest the recent low of $5.21.
Breaking down of $5.21 with high volume , that may likely go down to test $4.72-$4.75 price level which is also coincide with the 100 days MA.
Breaking down of this price level, may see it slide further down towards $4.10 ( 200 days MA).


After hitting the all-time-high of $7.77 on 13th Mar 2018, it has since revered and continued to trend lower. Also can be seen from sgx announcement page, dir has been selling some of their share. This may indicate that the share price could have reached the Peak level.
Share holder /investor may want to take note of this.


Not a call to sell or buy.
pls do you own due diligence.

Looking through the Financial nos for AEM Holdings, it has generally quite impressive with the greater magnitude of  boosting their total net income.

Total net income has increased from $6.4m ( 2016) to $29.5m (2017) , an increase of 360%.

EPS has also been generally rising for the past 4 years from 2013 to 2017.

The debt-to-equity ratio (D/E) is a financial ratio indicating the relative proportion of shareholders' equity and debt used to finance a company's assets. Closely related to leveraging, the ratio is also known as risk, gearing or leverage.

Borrowing money for business all along to me is a double edge sword. If use well you grow fast and prosper. Some industries are highly capital intensive so borrowing lots of money is the only way to be in business or for expansion.

Debt/Equity ratio has seen a great improvement from 2.46% in 2013 to 0.012% in 2017.

Lower values of debt-to-equity ratio are favorable indicating less risk. Higher debt-to-equity ratio is unfavorable because it means that the business relies more on external lenders thus it is at higher risk, especially at higher interest rates. A debt-to-equity ratio of 1.00 means that half of the assets of a business are financed by debts and half by shareholders' equity. A value higher than 1.00 means that more assets are financed by debt that those financed by money of shareholders' and vice versa.

An increasing trend in of debt-to-equity ratio is also alarming because it means that the percentage of assets of a business which are financed by the debts is increasing.

Total Revenue - is the sum of cash inflows, increase in operating accounts such as receivables and occasionally, unrealized gains generated in the course of Company's Business activities.

Total Revenue has greatly increased from $47m in 2013 to $221.87m (2017)

Current ratio = 2.18 (2013) vs 1.81 (2017) . It measures the company's ability to cover current debts with current assets.It it calculated by dividing total current assets by total current liabilities.

It seems to be able to maintain at a healthy level.

The company is in a total Net Net Position as can be seen the total current Assets $105.45m is greater than the total Liabilities $58.85m.

Final dividend of 6.5 cents (XD 18 May 2018) + interim dividend of 2.5 cents, total dividend of 9 cents which is only translate into a yield of 1.5% does not looks so attractive for an investor looking for a higher yield counter. 

I have roughly workout the EPS intrinsic value using the CAGR of 40% for past 4 years, discount factor of 25% and the fair value came up to be about $7.00.


Let us factor in another discount of 5% , $7.00 x 0.95 = $ 6.65.

The normal EPS of 47.85 cents, PE of 12.6 times base on current price of $6.03. The upwards potential of  62 cents which may translate to a gain of 10%

Let say we are going to workout the target price base on average PE of 14 times, that may give us a TP of $6.70.

Not a call to buy or sell.

Trade/invest base on your own decision.




AEM Holdings Ltd, an investment holding company, provides solutions in equipment systems; and precision components and related manufacturing services for various industries. The company operates through Equipment Systems Solutions and Precision Component Solutions segments. It provides high density modular test handlers, wafer handling systems, hot spot testers, and smartcard backend handlers for use in semiconductor, solar cell, and smartcard manufacturing facilities, as well as related tooling parts; and designs, develops, and manufactures precision engineering products, such as test sockets, device change kits, stiffeners, golden units, holding jigs, preventive maintenance kits, and precision mechanical assembly modules for use in the electronic, life science, instrumentation, and aerospace industries, as well as offers engineering services. The company offers its products through a network of sales offices, associates, and distributors in Asia, Europe, and the United States. AEM Holdings Ltd is headquartered in Singapore.