Aemulus Holdings Bhd appears to be heading to surpass its year high after breaching 36 sen immediate resistance on strong trading volume recently。

This bullish momentum above the breakout level will drive the stock higher towards the 40 sen YTD high, followed by the 46 sen next resistance.

It was trading at a 52-week high of 40 sen June last year but dipped to a low of 24 sen in November.

The counter closed 4.1% higher at 38 sen on May 23.

This is despite the automated test equipment company remained in the red for its sixth straight quarter.

Good news is that it managed to cut its net losses in the second quarter from a year earlier on lower expenses and higher revenue.

Net loss for the three months ended March 31, 2024, was RM2.04 million, or 0.31 sen per share, compared to RM6.61 million, or 0.70 sen per share, in 2QFY2023.

Revenue surged 76% year-on-year to RM9.32 million from RM5.29 million thanks to higher demand.

For the six months just ended, Aemulus’ net loss narrowed to RM5.61 million from RM9.46 million a year earlier.

This is on the back of a 6.8% rise in revenue to RM16.16 million from RM15.14 million a year earlier.

Moving forward, Aemulus said that the company is preparing for growth in the coming quarters.

This is amidst mixed signals from customers for the second half of this year and the moderate recovery in the semiconductor industry.

For one, it expects demand from China could slow down in the next quarter from a 23% growth in revenue, mainly due to typical business and inventory cycle.

It is positive on the progress in introducing new products into the enterprise storage market.

The company is widening its range of offerings, which should ease the negative impacts caused by a specific market.

Aemulus said it faces delays in several orders and deliveries in part due to the huge drop in demand by one of the major electric vehicle producers.

It expects the delay to continue in the April-Jun quarter.

Meanwhile, revenue from its medical electronics market,which contributes more than 10% of the revenue, is seen to be sustainable in the third quarter.

The results may point to tougher times for Aemulus but looking at the buying interest, the counter may still have legs to trend higher.

Investors may want to ride on the anticipated up cycle in the semiconductor market, which will probably help Aemulus return to the black.