AEM share price (SGX: AWX) in fireworks!

Bring on the champagne! Light up the fireworks! AEM share price looks set for a splendid run after the Group delivered an incredibly stellar 1HFY2022 financial result. Revenue for 1H2022 surged by 181% year-on-year to $540.5 million, while net profit rocketed 180% year-on-year to smash $83 million. The first half revenue and net profit were the highest in the Group’s history.

Prior to the result release, many investors (including myself) have the jitters. After all, Intel has posted a brutal US$500 million loss in the second quarter, resulting in the company cutting back on expenditure. Nonetheless, AEM survived the scare to post a stellar financial result. While it is too early to claim that AEM has managed to weed off its reliance on Intel for revenue, the result could push AEM to expedite its effort in diversifying revenue source.

AEM share price

The patent obtained in July for the thermal control for its System Level Test equipment would give AEM the trump card in its negotiation with the top ten semiconductor companies. The contract wins from 2 major customers vindicated my belief that intellectual property is the way to win the battle.

The contract wins came from “a leading High-Performance Computing (“HPC”)/Artificial Intelligence (“AI”) company” and “a leading mobile devices company”. In my assessment, the contract wins should help to offset the potential sales order reduction from Intel. This is because the Group has revised FY2022 revenue guidance upwards to be in the range between $750 million to $800 million. In the last quarter, the revenue forecast was $700 million to $750 million.

Previously, I wrote that AEM may become a $1 billion revenue company. On the basis of the first half performance, that day will come sooner than I expect. In fact, I would have expected AEM share price to …

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DBS share price braces for cooling measures?

Sign up for only $19.99! It could be peace before the perfect storm. Following the release of a decent set of financial result, the DBS share price has stalled somewhat. Rightfully, investors should have plenty to cheer about as the rising interest rates should provide power tailwinds for the bank’s business. Nonetheless, in today’s context, things aren’t always so straightforward.

Being the largest lender in Singapore, DBS’ business is sensitive to new property cooling measures. In the December 2021 cooling measures, the loan-to-value for HDB loans was tightened. However, it should be noted that round of cooling measures did not affect financial institution loans. As such, DBS housing loan portfolio has been resilient so far.

DBS share price

Fast forward to August 2022, the world has changed so much. Yes, the pandemic is still around but the invasion of Ukraine by Russia has created plenty of market chaos like never before. On the other hand, the US Federal Reserve is struggling to tame raging inflation by hiking interest rates. Despite these uncertainties, Singapore property market continued to defy gravity, with property prices sky-rocketing.

According to URA, prices of private residential properties increased by 3.5% in 2nd quarter of 2022, compared with the 0.7% increase in the previous quarter. As of July 2022, there were 12 collective sale deals totaling about $3.5 billion, more than the $2.2 billion seen in 2021. Question now is whether the red-hot property market would lead to another round of new property cooling measures? If so, what would be the impact on DBS share price?

If you look at the above graph, the property price index has been increasing on a break-neck pace for the past two years. Prior to the recent bull-run, the 2018 property cooling measure had helped to moderate the rate of increase. …

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Mapletree Logistics Trust returns from coma

NDP Special Offer! On 21 July 2022, Mapletree Logistics Trust (SGX: M44U) delivered its 1QFY2022/2023 result. In view of this, its time to take stock the performance of the S-REIT. Unit price had tumbled following the US Federal Reserve interest rate hikes in March and May. Subsequently, it seems that the counter had bottomed in late May as unit price began to start climbing. The tepid unit price performances were attributed to the lack of buying by institutional investors. For the past 7 months, Mapletree Logistics Trust did not feature in the SGX Top Ten Institutional Net Buy Stocks.

The million-dollar question confronting investors right now must be whether Mapletree Logistics Trust (M44U) will launch another mega equity financing to fund its overseas logistics asset acquisitions. The $700 million equity fundraising in November 2021 to purchase the China, Vietnam and Japan assets had knocked the wind out of the unit price, which never returned to the $2.00 mark prior to the equity fundraising.

Mapletree Logistics Trust

For background, the principal activity of MLT is to invest in a diversified portfolio of logistics real estate in Asia Pacific with the aim of providing its unitholders with a stable distribution stream. As at 30 June 2022, the Group’s portfolio had grown to a portfolio of 185 properties in Singapore, Australia, China, Hong Kong SAR, India, Japan, Malaysia, South Korea and Vietnam. The total value of assets under management is $13.0 billion.

During the quarter, MLT completed the acquisitions of Mapletree (Yuyao) Logistics Park in China and Baeksa Logistics Centre in South Korea. The management has announced the redevelopment of 51 Benoi Road in Singapore, as well as the potential amalgamation of Subang 3 and 4 in Malaysia with the two land parcels acquired recently. The Benoi redevelopment project is estimated to cost approximately $197 million

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AEM share price to rocket with new patent?

NDP Special Offer! On 5 July 2022, AEM obtained the grant of patent for the thermal control technology used in its System Level Test equipment. Will this patent change the fortune of the semiconductor test equipment manufacturer? Following the fallouts from the Russia-Ukraine conflict and soaring interest rates, AEM share price has been in sluggish form in 2022. Year-to-date, AEM share price slumped by about 17%.

One should not underestimate the potential impact of the new patent on AEM share price. Non-executive Chairman Loke Wai San was the man who led AEM out of dark Egypt when the former management was embroiled in a corruption scandal in 2012. Back then, AEM share price was on the brink of collapse and the company had been placed on the SGX Watch-List.

AEM share price

Despite the challenges, Loke Wai San saw the potential in the equipment business due to the partnership with leading US chipmaker, Intel. The decision proved to be pivotal as the partnership between AEM and Intel led to a patent for its test handling stacking technology. The patent was granted in March 2018. If investors look back, AEM share price used to trade at less than $0.10 in 2016. The patent turbocharged AEM share price to nearly $2.00 in March 2018.

Obviously, the 2018 patent has led to a significant volume ramp up from Intel, thereby increasing the revenue for AEM. Fast forward to 2022, Intel is no longer the force it used to be. As such, my sensing is that the management of AEM is trying its very best to weed off its heavy reliance on Intel for business. Currently, the Group is engaging top tier semiconductor companies. The new patent granted in July 2022 should be useful in its engagements with the semiconductor companies, thereby providing much needed revenue …

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