AEM Holdings has reported earnings of $42.3 million for the 2HFY2020 ended December, up 38.9% from earnings of $30.5 million.
FY2020 earnings surged 85% y-o-y to $97.6 million from the $52.8 million in earnings for the FY2019.
The group reported record revenue of $519.0 million for the FY2020, up 60.6% y-o-y, which stands at the higher end of its revenue guidance of $500 million to $520 million.
The higher revenue was due primarily by the growth in the Equipment Systems Solutions (ESS) with higher orders from customers.
Revenue for ESS in FY2020 increased by 62.8% y-o-y compared to the year before.
The group saw higher revenue from its other business segments, especially System Level Test & Inspection and Test and Measurement Solutions, with the exception of MEMS, which saw 20.4% y-o-y lower revenue due to lower demand from customers amid Covid-19.
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Depreciation of property, plant and equipment increased from $1.7 million in FY2019 to $2.1 million in FY2020 mainly due to higher carrying value from renovation and equipment expenditure.
Other income increased to $3.4 million in FY2020 from $177,000 the year before due to the higher government grants in FY2020.
Other expenses increased to $4 million from $3 million a year ago due to higher foreign exchange loss in FY2020 due to the weaker US dollar.
Earnings per share (EPS) for the FY2020 stood at 35.12 cents, compared to 19.38 cents in FY2019.
Net asset value (NAV) per share was 76.7 cents as at end-December.
A final dividend of 4.0 cents has been proposed for the 2HFY2020, bringing the total dividend to 9.0 cents for the FY2020, representing a 76.5% y-o-y increase.
As at 31 Dec 2020, cash and cash equivalents stood at $134.8 million.
Looking ahead, the group says it aims to expand the technology pillars and complement research and development (R&D) efforts through Mergers & Acquisitions (M&A).
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In addition to the growth opportunities and expanding semiconductor markets, the group also foresees volatility in the near future from the escalating trade tensions and increased competition from major test equipment players in SLT, it adds.
“We are grateful that we have been able to grow in what has been a difficult year for many. I am proud of the way our global team at AEM managed through the crisis and movement restrictions, to deliver on our customer commitments while staying safe. We were also able to complete several acquisitions last year and are working well to integrate their new capabilities into our customer offerings,” says AEM’s chairman Loke Wai San.
The group says it will not be issuing any financial guidance for FY2021 under the close of the offer for CEI.
Shares in AEM closed 7 cents higher or 1.7% up at $4.08 on Feb 25.