Shares of AEM up 13% after Q1 net profit jumps over four times to S$14.3 million

[SINGAPORE] Semiconductor test solutions provider AEM Holdings jumped by over 13 per cent on Thursday (May 14) morning on the back of a sizeable year-on-year surge in net profit for Q1.As at 9.04 am, the counter was trading 13.2 per cent or S$1.10 higher at S$9.45, before easing slightly to S$9.43 by 9.09 am, still up 12.9 per cent after three million securities changed hands.The company on Wednesday posted a S$14.3 million in net profit for the first quarter ended Mar 31, more than quadrupling from S$3.3 million in the year-ago period. It also raised its FY2026 revenue guidance by 20 per cent to between S$550 million and S$600 million, a business update by the group said.DBS Group Research analyst Amanda Tan has kept a “buy” rating on the stock, and a raised target price to S$11.80, from S$8.90. Year to date, the chip testing company has soared over 400 per cent.Her report on Thursday noted that the house will be raising its revenue forecast by 15 per cent and earnings forecast by 25 per cent for FY2026, to reflect stronger demand from the fabless AI/high-performance computing customer, improving order momentum from the PC/Foundry customer, and margin expansion.She also noted that there is scope for consensus earnings upgrades, to drive a positive share price reaction.SEE ALSOAI boom: AEM quadruples Q1 profit to S$14.3 million, raises FY2026 revenue guidance by 20%Navigate Asia ina new global orderGet the insights delivered to your inbox.“AEM is a pioneer in providing system level test (SLT) solutions and is currently around one generation ahead of its competitors,” said Tan. “Given its technological superiority, we believe AEM is well positioned to ride on the growing SLT market that has benefitted from increased complexity of chips and increased test coverage requirements, alongside the need for advanced heterogeneous packaging.”Decoding Asia newsletter: your guide to navigating Asia in a new global order. Sign up here to get Decoding Asia newsletter. Delivered to your inbox. Free.