Iggy's Journal: AEM's Profit Jumped Nearly Tenfold and the Stock Still Dropped. Here's Why That Isn't As Strange As It Sounds

The Investing Iguana
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Iggy's Journal: AEM's Profit Jumped Nearly Tenfold and the Stock Still Dropped. Here's Why That Isn't As Strange As It Sounds

3 September 2026, AM

Podcast Release

New Iggy Answers episode is up. Three SGX names, AEM Holdings, UMS Integration, and Frencken Group, are all riding the same AI infrastructure demand right now, but "AI beneficiary" is one label sitting on top of three very different stories. AEM's H1 net profit went from S$3.1 million to S$30.8 million, guidance raised twice this year, and the share price still fell against my last confirmed check. UMS Integration posted a 66% profit jump. Frencken moved the other way. The episode walks through growth trajectory, income reliability, and valuation as three separate questions instead of one combined verdict.

My Personal Take

Okay, I need to tell you about AEM because this one genuinely bugged me for a bit. Profit up almost tenfold. Guidance raised, twice. And the price still dropped. My first reaction was the same as yours probably is right now, that makes no sense.

It does make sense, just not the kind of sense a headline gives you. A growth story and an income story are not the same test, and AEM is still short of my yield hurdle even after a result like that. Good business, still doesn't clear my bar for retirement income, those two things can both be true at once. That is basically the whole episode in one sentence, but listen to the full thing, because UMS and Frencken each fail that same test in their own separate way, and none of them fail it for the same reason.

Anyway. Kopi in hand, episode's up, go listen.

📺 https://youtu.be/-Gzsf3ijqXo

📩 https://investingiguana.com/p/three-sgx-chip-suppliers-are-riding

Get everything, zero-day access on both platforms, full Red Zone watchlist, institutional-grade cheatsheets, with Iggy's Elite Investors, S$12/month.

Not financial advice. Iggy's Forensic Compliance Standards apply.

Cheers, Iggy 🦖

Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.

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