$SGX-AWX AEM (SGX) - I attended the earnings call earlier this week, there are a few new & important things to note:

- Management is confident in 2022 upgrading January guidance for second time, from what initially was SGD670-720M to now SGD750-800M.

- Revenue was 21% services, 42% consumables, and 37% in test equipment. Cash on the balance sheet grew to SGD181m

- AEM is a leader in Test 2.0 and is a pioneer in automated SLT (system level test) - important new test environment in the more complex and innovative technology in semiconductor space

- Whilst they're a pioneer in SLT, some competitors are also coming into the space. They have advantage by way of their brand name & reputation - being around for decades.

- According to study done by McKinsey, SLT industry megatrends forecast demand will grow by 8x by 2030.

- AEM believes their competitive advantage is in its full-stack solution offering. They also say the company has strong intimacy with its key customers to understand their needs and challenges.

- AEM announced the acquisition of a South Korean company (Nestek). It also signed two new customers in AI and high-performance computing. @eugenekhoo888 suggests they could be Apple and Qualcomm

- CHIPS act in USA will be positive for AEM long term.

- 1H22 margins are sustainable going into 2022 and beyond

- Optimistic of diversifying away from Intel and winning sizeable order from new clients.

- On Intel, addressable market is on its replacements as well as expansion of product / services. We know that intel is ramping up capex.

Verdict:
I like AEM's latest presentation slides - it tells alot more about the company. AEM is trading at sub 10x earnings. It's competitors, the likes of COHU / TERADYNE / KLA had recently released their results as well and are trading at premium valuations vs AEM (ranging from 15x to 25x). I'm not even considering valuations of Malaysian ATEs.

I believe AEM should be valued in accordance to their peers as they're a pioneer in semiconductor TEST 2.0, as well as starting to get the grove of diversifying their client base.

I'm staying invested.

cc: @wsoh @ValinV @zhengyou0705 @mengteck @Jinnsern @FIRLGuys @khaijiunnlim @asheryap @JXWK0116 @zhexiangxd @Jay888 @maxtan