Key Takeaways from AEM‘s factory tour and NDR

Research evidence excerpt

Key Takeaways from AEM‘s factory tour and NDR

ASEAN | IT Hardware

AEM EquityJuneResearch17, 2026

FLASH NOTEKey Takeaways from AEM's factory tour and

RATING BUYNDR

PRICE SGD10.14^

We hosted AEM's management team - Samer Kabbani (CEO), Kwek You-

Cheer (CFO) and Samir Mowla (COS) for a factory tour and NDR meeting PRICE TARGET | % TO PT SGD15.20 | +50%

on 17th June 2026. 52W HIGH-LOW SGD10.68 - SGD1.19

FLOAT (%) | ADV MM (USD) 89.4% | 75.25

We walked away more positive on these key takeaways: 1) growing TAM, MARKET CAP SGD3.2B | SGD3.2B

2) stronger customer outlook and 3) AEM's longer-term financial targets. TICKER AEM SP

We reiterate BUY on AEM as a key AI beneficiary with strong earnings to ^Prior trading day's closing price unless otherwise noted.

support valuations and likely improving customer outlook. We maintain our

estimates.

Chart 1 - Valuation for AEM appears

Demand outlook remains strong: Larger form-factor and packaging sizes are necessitating reasonable vs peers on 12M forward earnings,

equipment tool refresh in OSAT and IDMs; there are still opportunities for AEM to penetrate implying upside would come from more

positive customer outlook in FY27E.deeper into customer I if their packaging solution secures end-customers. Separately, AEM

sees opportunities in penetrating their SLT and FT solutions to customer A which represents

upside for our numbers. Lastly, the cycle was described as "complexity with scale" where

pricing is not the main concern for the first time in a while, but rather effectiveness and yield

to end-customer.

Customer I appear to have upside to estimates: Currently, this is not embedded into their

guidance and the NDR suggested that customer I is willing to invest given that they are courting

numerous customer opportunities.