Stronger performance ahead for Aemulus

The company expects to start delivery of the 1st few units of its new 5600-CIS tester in 2Q22 

by ANIS HAZIM / Pic Source: 

CGS-CIMB Securities Sdn Bhd foresees stronger results for Aemulus Holdings Bhd in the second half of 2022 (2HFY9/22F) driven by its healthy orderbook replenishment capabilities, new tester launches and expansion into the mixed-signal tester market. 

In a report yesterday, CGSCIMB’s analyst Mohd Shanaz Noor Azam noted that Aemulus’ orderbook is hovering between RM45 million to RM50 million as of Tuesday. 

“This is mainly driven by robust demand for radio frequency (RF), RF filter, automotive and CMOS image sensors (CIS) testers,” Mohd Shanaz wrote in a research note on Aemulus. 

He added that Aemulus expects to start delivery of the first few units of its new 5600-CIS tester in the second quarter of financial year 2022 (2Q22). 

“This will be part of an 80 CIS testers contract worth RM20 million that was secured in 2021. The group also plans to launch the updated version of its RF and RF filter tester utilising 100% local content with in-house IP design,” he noted. 

This is part of Aemulus’ strategy to increase the local content of its testers’ portfolio in order to participate in the Made in China 2025 initiative.

Aemulus has raised about RM63.7 million through a private placement following the issuance of 60.7 million new shares at RM1.05 per share in mid of December 2021. 

The group plans to utilise the proceeds for its capacity expansion plan at Aemulus Base, research and development, additional investment in its China joint venture, Tang Ming Sheng Shi (Jiashan) Technology Co Ltd (TMSS), repayment of borrowings and its working capital requirements. 

The analyst expects Aemulus’ new capacity expansion at Aemulus Base in Bayan Lepas could increase the group’s production capacity by 50% by 1Q23. 

Aemulus’ 1QFY9/22 results were in line at 25% of CGS-CIMB’s full-year net profit forecast. 

Its 1QFY9/22 revenue rose 62% year-on-year (YoY) to RM18.6 million, a new record quarter driven by higher contributions from all testers segments — mobile and tablet, data centre, automotive and CIS. 

CGS-CIMB estimates the group’s utilisation rate rose from 87% in 4QFY21 to 93% in 1QFY22. 

“The stronger sales were mainly driven by higher contributions from the China market, which made up 53% of Aemulus’ revenue in 1QFY22. 

“As a result of higher operating leverage, Ebitda margin expanded 16.5% points YoY to 30.5% in 1QFY22,” Mohd Shanaz explained.