AEM   

Secured > $65m of orders

Volumes are not too bad for this counter... the signals are slightly mixed but I think it might downtrend. Wait a couple of days to confirm.

 

Hi singaporegal, your comments on this counter, please? Thanks.

 

    In a report issued by UOBKH today, it has a buy call for AEM with a Tp of $0.30. This probably explains interest in the counter today. UOBKH is confident that the company is able to meet their projected revenue of $230.9m and a net profit of $17.8m for FY06.

    AEM trades at a discount to peers in the semiconductor equipment industry in terms of PE and PB ratios.

 

why is this stock jammed at $0.235?

 

DBSV has a a price target of $0.34.



"Its business outlook is very positive," Pei Hwa Ho of DBSV said. "They had a very good first half and I expect its substrates segment to be the main growth driver going forward."



AEM-Evertech posted a first-half net profit of $10.7m, 138% more than a year before, benefitting from a recovery in the semiconductor industry and growth in its substrates segment.

 

This stock is holding up very well in a down market recently. With the positive news on semiconductor industry, stocks in this sector are being re-rated. AEM-EVERTECH should benefit from this process. Although the share price of this stock has gone up over the past two months, it is still cheap. Just a personal view.

 

What price should i buy this stock at?

 

AEM-Evertech secured > $65m of firm sales orders in the 1st half of financial year 2006. These are expected to be fully delivered by the third quarter of financial year 2006. The amount already exceeds the total revenue of $58.7m in its equipment sales for the full FY05.



Its management expects 2006 to be a very positive year for AEM-Evertech.



AEM is a leading manufacturer of equipment products, organic substrates, precision engineering parts, chemicals, solutions and services in the semicon industry.



As market is weak, not time to buy yet.