With my divestment of $ComfortDelGro(C52) I have bought into $AEM(AWX) at a price of $2.75. :) Here is my brief coverage of this company.

I previously held this counter and released all I had at a price of $2.65. After a barrage of good news, I decided to enter the foray once again.

Throughout this entire coverage, I am assuming a profit margin of only 9%, which is a tad lower than their Q12017 profit margin of about 9.8%. Therefore, all my calculations here will be UNDERSTATED if they were to improve their profit margins, which has been the case over the last few years.

What I am also assuming is that there are no further sales order received from customers, which is almost zero probability.

Ready to read on? LETS GO!

"The Company is pleased to announce that it has received as at 31 May 2017, sales orders worth S$182 million for delivery in FY2017. This represents an increase of S$30 million in sales orders received over the previous sales order received announcement made on 18 April 2017."

With a profit margin of 9%, $182m of revenue equates to $16.38m of profit, which averages out to $5.46m per quarter. Adding q1 earnings, total year earnings will be 20.5 million, which equates to an EPS of $0.32.

With such an EPS, the share price of $2.72 represents a PE ratio of ONLY 8.6x. Everyone knows that this is an INSANELY low PE ratio, and that the market has not fully priced in the growth that is to come.

Even if it goes to an undemanding PE ratio of 12x, the price would have already grown to $3.8. I personally do not think that the management would allow the stock to escalate to that price, and they would issue bonus shares to improve the liquidity of the shares.

To give a comparison, $Micro-Mechanics(5DD) is trading at a PE ratio of 13x and $UMS(558) is trading at 17x (Info extracted from Stockfacts, correct me if I am wrong.)

What else do we want? It does not stop here! The company states - "Thirdly, with clear visibility of growth into the next few years, we intend to adopt a dividend policy to pay annual dividends, including interim dividends, of not less than 25% of profit after tax excluding non-recurring, one-off and exceptional items."

With a minimal profit estimation of AT LEAST $20million, 25% profit means $5m paid out, which equates to a dividend of at least 2.8% for an insane growth company.

To top it all of, institutional investors are buying in to AEM as well. "is pleased to announce that several long-only institutional funds have bought AEM shares and have become new shareholders. The institutional funds took up 2,737,800 shares at $2.70 a share from Orion Phoenix on 5 June 2017."

With this massive inflow of funds, I believe that AEM will attract many more institutional investors. I do not see Orion Phoenix reducing the percentage of their shares any further. With Institutional Investors buying at a price of $2.70, there is a major support there and I only see the price going up.

This is only the beginning of AEM!

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97 likes 1978 comments

last batch of funds queued at 2.55...will laugh if i can get it filled bahahahha


Reply to @NoeticInvestor : Me set trigger 2.57, limit price 2.58 ;-)

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Oh ya guys. Venture went below 20... WHERE ARE MY BULLETS..


Current price = Forward PE of 5.6 :)


Reply to @OngEric : Net profit before tax estimate is 32m. After tax 27m right?

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jiayou all who are holding..! I blocked off one person that might add fear to a solid company. my first time blocking off someone. LOL


Reply to @Opportunistic_Investor : thanks. have been holding since Aug. I see growth in this company with higher revenue and profit. and I like the management too.

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mm .. u owner of pasta fresca? cause I remember hearing this jingle on TV....




Fundamentals have not changed..


Very very heavy selloff over the last 2 days. Total of 2.5m shares traded hands. Must be certain BB offloading.

BB offload, i hope that i can load more at a cheaper price. Current dividend yield of 4.4% at price of 2.80 now.


Oh my. bascially is below pe 7x now simply say.


drop drop devil fruit

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Target Price

Assuming tax of 19% based on 3Q results:

$42m profits will give us $34m NPAT, which means $0.52EPS.

This means that AEM is currently trading at a forward PE of 7x, and this is excluding any upside of orders or improvement of margins.

A PE of 10x will net us $5.20, an 85% increase from the recent low of $2.80.

Does AEM deserve to trade at a PE of 10x with a full year guidance? Definitely think so.

Currently trading at about a PE of 8 based on FY17 results.

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Salvatore started a poll

$AEM(AWX.SI) Blockbuster buyback, Blockbuster results, Does it lead to blockbuster share price?

Poll away!

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$AEM(AWX.SI) Looks like another bumper year. Loke Wai San's comments seem bullish for 2018.


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Tech Bull today. Congrats all! Must be because of HSI up 1.86%!

$Venture(V03.SI) $Avi-Tech(BKY.SI) $Hi-P(H17.SI) $UMS(558.SI) $Valuetronics(BN2.SI)

only $AEM(AWX.SI) never chiong today.

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