Advanced Engineered Materials Ltd (ASX:AEM)

Advanced Engineered Materials Ltd (AEM) provided an update on their commercial progress, highlighting significant developments in sales and operational activities. Despite an increase in sales growth, challenges such as delays in customer tooling for production capacity and a slowdown in demand for sapphire in the automotive sector due to reduced car sales in China affected overall performance. AEM anticipates a significant uptick in sales in the latter half of 2026, with projections between 40 to 60 tonnes, and further growth expected in 2027 as customers finalize tool-ups and move into commercial production. The company also expects the 4N+ circuit at its Cap-Chat Plant to reach full capacity by the end of 2027, driven by increasing demand for higher-purity HPA from the semiconductor sector. The ramp-up of the 3N5+ circuit is projected to complete by mid-2028 due to prioritization of high-purity products. Order growth was led by Asia, contributing to a substantial portion of the commercial order volume. AEM's customer pipeline expanded to 216 projects by July 2026, reflecting an urgent market need to secure supply amid a looming HPA supply crunch.