AEM-ing For the Stars

Research evidence excerpt

AEM-ing For the Stars

Singapore | IT Hardware

AEM EquityMayResearch14, 2026

TARGET | ESTIMATE CHANGEAEM-ing For the Stars

1Q26 showed momentum in customer wins and operating leverage— RATING BUY

we expect this to drive continued EPS revisions. As such, we raise EPS PRICE SGD9.93^

by 57%/71%/70% for FY26E-28E, and are now 64%/95%/111% above PRICE TARGET | % TO PT SGD15.20 (SGD8.88) |

consensus EPS. +53%

52W HIGH-LOW SGD9.82 - SGD1.19

We reiterate BUY with a revised street-high PT of S$15.20 (53% upside) on FLOAT (%) | ADV MM (USD) 89.9% | 65.30

37x P/E on our FY27E EPS. AEM is a key AI beneficiary offering market- MARKET CAP SGD3.1B | SGD3.1B

leading growth with reasonable valuation. Given the scarcity and growth TICKER AEM SP

premium, we draw comparisons to DELTA TB. ^Priornoted.trading day's closing price unless otherwise

Earnings takeaways post 1Q26 con-call: Guidance beat and raise was a function of customer

A's demand which we see as a sign of our thesis continuation of elongation of test time and FY (Dec) CHANGE TO JEFe JEF vs CONS

cycles. We see further upside in margin given new customer additions in FY26E as well as a 2026 2027 2026 2027

stronger-than-expected operating leverage due to higher-margin profile of new customers. We NA NA NA NA

note that new customer contribution of ASE, Korean memory customer and improvement in EPS +57% +71% NA NA

Customer I as such we see scenarios in our bull-case emerging, and we adjust our FY26-28E

revenue by c.13%/22%/26% and FY26-28E EPS by c.59%/73%/72% compared to previous 2026 (SGD) 1Half 2Half FY

forecast. We are now c.64%/95%/111% above consensus EPS from FY26-28E. We raise our EPS -- -- 0.22

PT to S$15.20 on 37x P/E. We reiterate BUY on the name and continue to like the market- PREV 0.14