By Shares of AEM Holdings, a leading semiconductor and electronics test solutions company, experienced a significant decline in early trade following a cautionary statement regarding an inventory shortfall that is expected to impact profitability.
Stock Dips and Concerns Arise
During Monday’s trading session in Singapore, the stock plummeted by as much as 6.2%, representing the largest intraday drop since August of the previous year. The shares hit a five-month low, resting at S$3.12.
Unveiling the Inventory Shortfall
AEM Holdings announced on Sunday that they anticipate a 5% to 7% reduction in inventory figures compared to the S$358.6 million reported at the end of September 2023.
The company attributed this deficit to a human error that occurred while conducting transactions with their enterprise resource planning system. This mistake arose during the transition of production operations from Singapore to their facility in Penang, Malaysia.
Profitability Outlook
As a result of the expected shortfall, AEM Holdings states that their profitability for the fiscal year ending on December 31, 2023, is likely to be influenced negatively.
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