Singapore Exchange Ltd (SGX)

Singapore Exchange is Asia’s leading and trusted market infrastructure, facilitating the exchange of capital and ideas to create value for people, businesses and economies. As a multi-asset exchange operating equity, fixed income and derivatives markets to the highest regulatory standards, SGX is a vertically integrated business that provides listing, trading, clearing, settlement, depository and data services.

With about 40% of listed companies and over 80% of listed bonds originating outside of Singapore as well as established linkages across the region and in Europe, SGX is Asia’s most international and connected exchange. Offering a full suite of derivatives products across Asian equity indices, commodities and currencies, SGX is the world’s most liquid international market for the benchmark equity indices of China, India, Japan and ASEAN.

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Headquartered in AAA-rated Singapore, SGX has over 800 employees including offices in Beijing, Chicago, Hong Kong, London, New York, Mumbai, San Francisco, Shanghai and Tokyo.

Asia’s leading multi-asset exchange

SGX Market Strategist, Equity & Fixed Income, Singapore Exchange Ltd (SGX)

Geoff Howie

SGX Market Strategist, Equity & Fixed Income

Equity Bottom-Up

<p><i><b>These equity research reports are not written by the SGX.</b> SGX supports the distribution of the research reports by external contributors. Please refer to the Disclaimer in the attached report.</i></p><div>
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<h2>AEM Holdings Ltd</h2>
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<p><strong>Onward to new highs</strong></p>
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<p><strong>Upgrade to BUY with a higher TP of S$3.53; expecting share price to breakout to new all-time highs.</strong> Since our HOLD recommendation on 8 May, AEM’s share price has been consolidating between S$3.00-3.20. With positive developments in the industry, improving outlook as well as higher FY20F sales guidance, we believe AEM’s share price could break out to hit a new record.</p>
<p><strong>SEMI increases forecast for global fab spending in 2021 by 10%, US semiconductor equipment billings increases 13.6% y-o-y</strong> <strong>in May, and inventory builds in chip makers.</strong> This is the eighth consecutive y-o-y increase since October last year and we view this as an optimistic sign for the industry. In addition, we noted inventory builds (+9.6% y-o-y) in 1Q20 in top US chip makers on top of increases in revenue (+10.9% y-o-y).</p>
<p><strong>Telecommuting as a structural change to drive data center chip demand.</strong> With the protraction of the pandemic and increase in employees’ productivity levels from working-from-home, companies are reassessing more flexible working arrangements. We believe there will be some conversion post-COVID-19.</p>
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<p><strong>Where we differ</strong>: We are more optimistic on AEM’s earnings and the pickup in momentum in the industry.</p>
<p><strong>Potential catalysts</strong>: Stronger semiconductor equipment billings, increased sales guidance, acquisitions, new revenue streams.</p>
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These equity research reports are not written by the SGX. SGX supports the distribution of the research reports by external contributors. Please refer to the Disclaimer in the attached report.



AEM Holdings Ltd




Onward to new highs




Upgrade to BUY with a higher TP of S$3.53; expecting share price to breakout to new all-time highs. Since our HOLD recommendation on 8 May, AEM’s share price has been consolidating between S$3.00-3.20. With positive developments in the industry, improving outlook as well as higher FY20F sales guidance, we believe AEM’s share price could break out to hit a new record.
SEMI increases forecast for global fab spending in 2021 by 10%, US semiconductor equipment billings increases 13.6% y-o-y in May, and inventory builds in chip makers. This is the eighth consecutive y-o-y increase since October last year and we view this as an optimistic sign for the industry. In addition, we noted inventory builds (+9.6% y-o-y) in 1Q20 in top US chip makers on top of increases in revenue (+10.9% y-o-y).
Telecommuting as a structural change to drive data center chip demand. With the protraction of the pandemic and increase in employees’ productivity levels from working-from-home, companies are reassessing more flexible working arrangements. We believe there will be some conversion post-COVID-19.




Where we differ: We are more optimistic on AEM’s earnings and the pickup in momentum in the industry.
Potential catalysts: Stronger semiconductor equipment billings, increased sales guidance, acquisitions, new revenue streams.

















シンガポール証券取引所以外でのレポート：AEMホールディングス：新たな高値へ