$AEMULUS / 0181 (AEMULUS HOLDINGS BERHAD): Continuous Reduction in Losses

Here are some updates on Q2FY24 performance: -

📌 Revenue surged by 36% and 76% quarter-on-quarter and year-on-year to RM9.32 million, driven primarily by increased demand for ATE and related services in China, Malaysia, Singapore, and the US.
📌 ATE revenue spiked by 86%, while related services also experienced a notable increase of 47.2%.
📌 China has overtaken Malaysia as the leading revenue contributor, accounting for 48.9% of total revenue.
📌 Research and development (R&D) expenses rose by 13.6% to RM1.57 million, attributed to amortization costs and R&D spending.
📌 Finance costs increased to RM0.38 million, reflecting higher utilization of trade line facilities for working capital needs.
📌 Loss before tax decreased by 44% and 69% compared to the previous quarter and year, amounting to RM2 million, driven by reduced operating expenses and higher revenue.
📌 Trade receivables decreased by 10% mainly due to improved collections from customers.
📌 Deposits declined by 47%, primarily due to withdrawals of fixed deposits for general working capital purposes and redeployment of funds into other investments.
📌 Management is gearing up for continued growth quarter over quarter.
📌 Management anticipates a slowdown in sales in the China region in Q3FY24 after a 23% revenue growth last quarter, attributed to typical business and inventory cycles. However, they expect to introduce new products in the Enterprise Storage market to diversify their offerings and mitigate market-specific challenges.
📌 Rest of World sales region experienced a 53% growth last quarter, although some orders and deliveries were delayed due to reduced demand from a major electric vehicle producer. The management foresees these delays persisting into Q3FY24.
📌 AEMULUS anticipates revenue contributions from other industry segments, particularly the medical electronics market, which now accounts for over 10% of the Group’s revenue. Management expects this segment to continue making sustainable contributions in Q3FY24.