Market Overview - The Hong Kong stock market jumped 1.26% amid international capital reacting to U.S. President Trump's management of expectations regarding potential military action against Iran [1] - Trump's decision to delay military action against Iran for two weeks aligns with Israel's urgency to target Iranian nuclear facilities, particularly the Fordow nuclear site [1] Geopolitical Risks - Iran's missile attacks have decreased in intensity, averaging 20-30 high-intensity missiles daily, but threats to Israeli targets in Europe have emerged [2] - The Iraqi Shiite militia "Hezbollah" has threatened to block the Strait of Hormuz if the U.S. intervenes in the Israel-Iran conflict, leading to a decline in shipping traffic through the strait [2] Financial Developments - The People's Bank of China and the Hong Kong Monetary Authority launched a cross-border payment system, enhancing efficiency and reducing costs for cross-border remittances [3] - Major Chinese banks involved in the cross-border payment system saw stock increases of around 2% [3] - Insurance stocks also surged, with companies like China Life and New China Life rising over 4% due to stable investment returns [3] Industry Innovations - China's domestic EUV lithography machine has achieved a significant milestone with a production yield exceeding 70%, marking a critical point in the development of high-end chip manufacturing [6] - This advancement indicates a potential shift in the global semiconductor landscape, reducing reliance on foreign technology [6] Company-Specific Insights - China Coal Energy reported a decline in revenue and profit due to falling coal prices, with average prices for various coal types down significantly compared to the previous year [7] - The company is implementing cost-reduction measures and has seen its major shareholder increase their stake, reflecting confidence in the company's future [8]

Investment Rating - The report assigns a neutral investment rating to ASMPT (00522.HK) based on its performance and market outlook [2][49]. Core Insights - ASMPT's Q1 2025 performance met expectations with sales revenue of $402 million, a slight year-over-year decline of 0.5% and a quarter-over-quarter decrease of 8.2%. The gross margin was 40.9%, showing a quarter-over-quarter increase of 3.71 percentage points but a year-over-year decrease of 0.97 percentage points [3][8][9]. - The company reported a total new order amount of $431 million, reflecting a quarter-over-quarter increase of 2.9% and a year-over-year increase of 4.8%, driven primarily by the surface mount technology (SMT) segment [3][8]. - For Q2 2025, ASMPT expects sales revenue to be between $410 million and $470 million, with a median forecast indicating a year-over-year increase of 3.0% and a quarter-over-quarter increase of 9.6% [17][18]. Summary by Sections 1. Q1 2025 Company Performance - **Overall Performance**: Sales revenue for Q1 2025 was $402 million, aligning with previous forecasts. The gross margin was 40.9%, with a notable quarter-over-quarter improvement [3][8]. - **Segment Performance**: - **Semiconductor Solutions**: Generated $256 million in sales, a year-over-year increase of 44.7%, benefiting from AI developments and strong TCB equipment performance [11]. - **Surface Mount Technology**: Sales were $146 million, reflecting a year-over-year decline of 35.6%, impacted by weak demand in automotive and industrial markets [13]. 2. Company Future Outlook - ASMPT anticipates a stable growth trajectory for its mainstream business, despite uncertainties related to tariffs. The company remains confident in the demand for advanced packaging (AP) and TCB solutions, particularly in AI and high-performance computing applications [17][29]. 3. Q&A Session Highlights - The company expects Q2 orders to remain consistent with previous quarters, particularly in the advanced packaging sector, driven by ongoing demand in storage and logic fields [19][20]. - The impact of tariffs on operations has been minimal so far, with some customers reassessing their investment strategies due to the tariff environment [20][29].

Group 1 - The core viewpoint is that Daiwa Capital Markets has reduced the target price for ASMPT (00522.HK) to HKD 68 and has lowered its net profit forecast for the company [1] Group 2 - The adjustment in target price reflects a more cautious outlook on ASMPT's financial performance amid changing market conditions [1] - The revision in net profit estimates indicates potential challenges the company may face in maintaining profitability [1]

Financial Data and Key Metrics Changes - The group achieved revenue of US$401.5 million, meeting the midpoint of revenue guidance [3][7] - Group bookings totaled US$431.2 million, showing a 2.9% quarter-on-quarter growth and 4.8% year-on-year growth [7] - Group gross margin exceeded 40%, rebounding due to a better product mix [6][8] - Adjusted net profit was HKD83.2 million, up 1.6% quarter-on-quarter but down 53.1% year-on-year [9] Business Line Data and Key Metrics Changes - The semiconductor (semi) segment contributed approximately 64% of the group's revenue, with revenue of US$255.6 million, up 0.6% quarter-on-quarter and 44.7% year-on-year [9][10] - Semi bookings were US$222.9 million, down 19.5% quarter-on-quarter but up 11.4% year-on-year [10][11] - The surface mount technology (SMT) segment delivered revenue of US$145.9 million, a decline of 20.3% quarter-on-quarter and 35.6% year-on-year [12] - SMT bookings were US$208.4 million, up 46.5% quarter-on-quarter, driven by strong seasonal demand [12] Market Data and Key Metrics Changes - The mainstream business continued to be affected by soft demand from automotive and industrial end markets, with growth trajectory difficult to forecast [6][14] - The company noted stabilization in the automotive and industrial end markets, although they remained soft [12][14] Company Strategy and Development Direction - The focus for 2025 is on securing additional orders from both high volume manufacturing (HVM) and logic customers [5][14] - The company remains confident in the demand for advanced packaging (AP) and TCB solutions for AI and high-performance computing applications [14][105] - The global manufacturing footprint provides flexibility to navigate potential tariff impacts [14][105] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in sustaining AP revenue and expects mainstream business to improve due to seasonality and better-than-expected Q1 bookings [14] - The indirect impact of tariffs makes the growth trajectory difficult to forecast, but management remains optimistic about the overall market growth [14][26] Other Important Information - The company completed the delivery of the bulk of ECB orders to a leading memory maker, with further orders expected [4][5] - The strong progress in DCB solidifies the company's leadership in the market [5] Q&A Session Summary Question: Booking direction in the second quarter and advanced packaging booking momentum - Management remains confident that Q2 bookings will be within a similar range compared to the last few quarters, assuming no unexpected impacts from tariffs [21][22] Question: Impact of tariffs on SMT business and capacity expansion - Management noted that while there hasn't been significant direct impact on operations, some customers are evaluating their investment timing and location due to tariffs [26][27] Question: Magnitude of orders from the second HBM customer - Orders from the second HBM customer are smaller compared to the first but are considered meaningful, with two orders already received [42] Question: Progress on chip on wafer tools and customer decisions - Management indicated significant progress from qualification to pilot production, with expectations for orders in the second half of 2025 [50][52] Question: Confidence in follow-on orders from the leading HBM customer - Management is hopeful for follow-on orders and is actively engaging with multiple HBM players [62] Question: OpEx management and future profitability - Management emphasized a balance between protecting future R&D investments and maintaining sensible cost control measures [99][100]

Q1 2025 Results Presentation 30th April 2025 Disclaimer The information contained in this presentation is provided for informational purpose only and should not be relied upon for the purpose of making any investment or for any other purpose. Some of the information used in preparing this presentation was obtained from third parties or public sources. The information contained in this presentation has not been independently verified. No representation or warranty, expressed or implied, is made as to, and no ...

Financial Data and Key Metrics Changes - The company achieved group revenue of US$401.5 million, meeting the midpoint of revenue guidance [3] - Group bookings totaled US$431.2 million, showing a 2.9% growth quarter on quarter and 4.8% growth year on year [7] - Group gross margin exceeded 40%, rebounding due to a better product mix [6] - Adjusted net profit was HKD83.2 million, up 1.6% quarter on quarter but down 53.1% year on year [9] Business Line Data and Key Metrics Changes - The semiconductor (semi) segment contributed approximately 64% of the group’s revenue, with revenue growing to US$255.6 million, up 0.6% quarter on quarter and 44.7% year on year [9] - Semi bookings were US$222.9 million, down 19.5% quarter on quarter but up 11.4% year on year [10] - The surface mount technology (SMT) segment delivered revenue of US$145.9 million, a decline of 20.3% quarter on quarter and 35.6% year on year [12] - SMT bookings were US$208.4 million, up 46.5% quarter on quarter, driven by strong seasonal system in package (SiP) bookings [12] Market Data and Key Metrics Changes - The mainstream business continued to be affected by soft demand from automotive and industrial end markets, making growth difficult to forecast [6] - The company noted stabilization in the automotive and industrial end markets, although they remained soft [12] Company Strategy and Development Direction - The focus for 2025 is on securing additional orders from both high volume manufacturing (HVM) and logic customers [5] - The company remains confident in the demand for advanced packaging (AP) and TCB solutions for AI and high-performance computing applications [14] - The global manufacturing footprint provides flexibility to navigate potential tariff impacts [14][27] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in sustaining AP revenue and expects mainstream business to improve due to seasonality and better than expected Q1 bookings [14] - The indirect impact of tariffs makes the growth trajectory difficult to forecast, but management is monitoring the situation closely [25][100] Other Important Information - The company completed the delivery of the bulk of ECB orders to a leading memory maker, with further orders expected [4] - The strong progress in DCB solidifies the company's leadership in the market [5] Q&A Session Summary Question: Booking direction in the second quarter and advanced packaging booking momentum - Management remains confident that Q2 bookings will be within a similar range compared to the last few quarters, assuming no unexpected impacts from tariffs [21] Question: Impact of tariffs on SMT business and capacity expansion - Management noted no significant direct impact on operations but acknowledged that some customers are evaluating their investment timing and location due to tariffs [25] Question: Magnitude of orders from the second HBM customer - Orders from the second HBM customer are smaller compared to the first but meaningful, with two orders received [46] Question: Progress on chip on wafer tools and customer decisions - Significant progress has been made from qualification to pilot production, with expectations for orders in the second half of 2025 [58] Question: Confidence in follow-on orders from the leading HBM customer - Management is hopeful for follow-on orders and is working hard to secure them [70] Question: Shareholder returns and potential buyback policies - The company is evaluating options for returning capital to shareholders but does not believe it is the right time for a share buyback due to macro uncertainties [107] Question: OpEx management and future profitability - The company is mindful of cost levels and has conducted restructuring programs, balancing R&D investments with cost control [110]

Group 1 - The core revenue for ASMPT in the first quarter was 3.12 billion HKD, slightly below the forecast of 3.2 billion HKD [1] - The net profit for the first quarter was reported at 83.6 million HKD [1]

Financial Performance - Q1 2025 sales revenue reached HKD 31.2 billion (USD 4.02 billion), down 0.5% year-on-year and down 8.2% quarter-on-quarter[6] - Total new orders amounted to HKD 33.5 billion (USD 4.31 billion), up 4.8% year-on-year and up 2.9% quarter-on-quarter[6] - Operating profit was HKD 1.60 billion, down 33.3% year-on-year but up 3,044.6% quarter-on-quarter[6] - Adjusted profit was HKD 832 million, down 53.1% year-on-year but up 1.6% quarter-on-quarter[13] - The total profit for the period was HKD 82.6 million, compared to HKD 4.2 million in the previous quarter and HKD 177.5 million in the same quarter last year[21] - The company’s basic earnings per share for the period was HKD 0.01, compared to HKD 0.43 in the same quarter last year[20] - Basic and diluted earnings per share for the three months ended March 31, 2025, were HKD 0.20, compared to HKD 0.01 in the previous quarter[25] Segment Performance - Semiconductor Solutions segment sales revenue increased to HKD 19.9 billion (USD 2.56 billion), up 44.7% year-on-year[14] - Semiconductor Solutions segment gross margin was 46.3%, up 368 basis points quarter-on-quarter and up 167 basis points year-on-year[14] - The Surface Mount Technology Solutions segment reported total new orders of HKD 1,620.8 million (USD 208 million), a quarterly increase of 46.5% but a year-over-year decrease of 1.4%[16] - Sales revenue for the segment was HKD 1,134.8 million (USD 146 million), reflecting a quarterly decline of 20.3% and a year-over-year decline of 35.6%[16] - The gross margin for the segment was 31.5%, up 180 basis points quarter-over-quarter but down 827 basis points year-over-year[17] - The segment recorded a loss of HKD 5.3 million, indicating a negative profitability rate of -0.5%[18] - The semiconductor solutions segment achieved a profit margin of 11.9%, up from 3.8% in the previous quarter[24] - The surface mount technology solutions segment reported a loss margin of -0.5%, down from a profit margin of 1.4% in the previous quarter[24] Future Outlook - The company expects Q2 2025 sales revenue to be between USD 410 million and USD 470 million, with a median forecast of +3.0% year-on-year and +9.6% quarter-on-quarter[5] - The company expects sales revenue for the second quarter of 2025 to be between USD 410 million and USD 470 million, with a year-over-year increase of 3.0% at the median[19] - The company remains confident in the demand for advanced packaging solutions, particularly in artificial intelligence and high-performance computing applications[19] Cost Management - Operating expenses decreased by 11.3% quarter-on-quarter due to stringent cost control measures[13] - The group incurred restructuring costs of HKD 879 for the three months ended March 31, 2025, compared to HKD 95,325 in the previous quarter[27] Market Conditions - The segment's performance is influenced by the ongoing weakness in the overall market, despite some stabilization in the automotive and industrial end markets[16] - The company will continue to monitor the impact of tariffs and adjust its strategies accordingly to maintain flexibility in its global production layout[19] Other Financial Metrics - Interest income for the three months ended March 31, 2025, was HKD 25,710, a decrease from HKD 27,999 in the previous quarter[24] - Total sales revenue for the group was HKD 3,124,593, down 8.2% from HKD 3,403,352 in the previous quarter[24] - The group reported a pre-tax profit of HKD 106,733 for the three months ended March 31, 2025, compared to HKD 11,380 in the previous quarter[24] - Adjusted profit for the three months ended March 31, 2025, was HKD 83,224, reflecting a slight increase from HKD 82,093 in the previous quarter[27] - Semiconductor solutions revenue for the three months ended March 31, 2025, was HKD 1,989,768, an increase of 0.1% compared to HKD 1,978,748 for the previous quarter[24] - Surface mount technology solutions revenue decreased by 20.3% to HKD 1,134,825 from HKD 1,424,604 in the previous quarter[24]

Financial Performance - Total sales revenue for 2024 was HKD 13.23 billion (USD 1.69 billion), a decrease of 10.0% year-on-year[10]. - Operating profit for 2024 was HKD 558 million, down 49.4% year-on-year[10]. - Basic earnings per share for 2024 were HKD 0.83, a decrease of 52.0% year-on-year[10]. - Adjusted earnings for 2024 were HKD 4.26 billion, down 42.8% year-on-year[10]. - The group's consolidated profit after tax for the year was HKD 342 million (adjusted to HKD 426 million according to non-Hong Kong Financial Reporting Standards), a year-on-year decrease of 51.9%[37]. - The total annual revenue for the group decreased by 10.0% to HKD 13.23 billion (USD 1.69 billion), with adjusted profit down by 42.8% to HKD 426 million[30]. - The group's adjusted profit decreased by 42.8% year-on-year to HKD 4.26 billion ($0.54 billion) in 2024[58]. - The total employee cost for the group in 2024 was HKD 5.19 billion, an increase from HKD 5.02 billion in 2023[81]. Orders and Backlog - The total amount of new orders for 2024 was HKD 12.75 billion (USD 1.63 billion), an increase of 4.0% year-on-year[10]. - As of December 31, 2024, the total backlog of orders was HKD 6.05 billion (USD 0.79 billion)[10]. - The total unfulfilled orders at the end of the year reached HKD 6.05 billion ($0.79 billion), with an order-to-delivery ratio of 0.96[55]. - Total new orders for the group reached HKD 12.75 billion ($1.63 billion) in 2024, reflecting a year-on-year increase of 4%[53]. Market Trends and Focus Areas - The company remains optimistic about growth in the semiconductor industry driven by AI applications and advanced packaging trends[14]. - The company is focusing on expanding its market presence in electric vehicles, 5G technology, and IoT[14]. - The company reported a decline in demand from consumer electronics and automotive sectors due to weak consumer spending[15]. - The demand for advanced packaging solutions is driven by the growth in artificial intelligence and high-performance computing applications, with significant orders from major AI companies[42]. - The automotive end market is projected to contribute approximately 20% or $340 million to the group's total sales revenue in 2024, despite a weak market[52]. Segment Performance - The semiconductor solutions segment recorded a year-on-year revenue growth of 24.1% in Q4 2024, driven by strong demand for advanced packaging solutions[30]. - The surface mount technology solutions segment experienced a year-on-year revenue decline of 21.3%, consistent with the overall weak market performance[30]. - The semiconductor solutions segment accounted for approximately 51% of total sales revenue in 2024, with a year-on-year growth of 6.9%[54]. - The surface mount technology solutions division recorded total new orders of HKD 1.11 billion (USD 142 million) in Q4 2024, down 15.8% quarter-over-quarter and 25.9% year-over-year, reflecting a weak global automotive and industrial end market[67]. Research and Development - The company plans to allocate a significant portion of new R&D resources to high-potential areas, including next-generation products like TCB and hybrid bonding[27]. - The group invested approximately HKD 2.08 billion in R&D in 2024, compared to HKD 2.05 billion in 2023, maintaining a strong commitment to technological leadership[71]. - The company is committed to ongoing cost optimization and improving overall profitability in the long term[31]. Dividends and Shareholder Returns - A special dividend of HKD 0.25 per share is proposed, with a total annual dividend of HKD 0.67 per share for 2024[30]. - The total dividend for the fiscal year 2024 is HKD 0.67 per share, down from HKD 1.39 per share in 2023[38]. - The board proposed a final dividend of HKD 0.07 per share and a special dividend of HKD 0.25 per share, compared to HKD 0.26 and HKD 0.52 per share respectively in 2023[38]. Sustainability and Governance - The company continues to focus on sustainability, achieving significant progress in environmental initiatives and aiming for a 25% female board representation by 2025[28]. - ASMPT is committed to achieving net-zero emissions by 2035, with interim targets of a 30% reduction by 2026 and 50% by 2030[82]. - The board aims to achieve a 25% representation of female directors by the end of 2025[83]. - The company emphasizes a positive corporate culture to support employee development and corporate citizenship[146]. Leadership and Management - Leadership transitions are underway, with key promotions aimed at enhancing R&D capabilities and aligning strategies with market demands[25]. - Dr. Hichem M'Saad appointed as CEO and Chairman of ASM International N.V. on May 13, 2024, previously served as CTO since May 16, 2022[111]. - ASM's executive team includes Mr. Guenter Walter Lauber, who has over 20 years of experience in the SMT equipment industry and has been with ASM since its acquisition of SMT business in 2011[113]. - The company emphasizes its leadership in advanced packaging technology and end-to-end solutions to meet stringent industry demands[114]. Corporate Governance - The board consists of ten directors, with two being female, and 60% of the board members are independent non-executive directors[148][152]. - The company has a strong governance structure with a diverse board, including members with backgrounds in law, finance, engineering, and technology[104][105][106][109][110]. - The board has complied with the listing rules requiring at least three independent non-executive directors, with two possessing relevant financial expertise[150]. - The company has adopted a board independence policy to ensure independent opinions are obtained[153]. Employee and Shareholder Engagement - The employee share incentive plan allows for the issuance of up to 40,667,133 new shares, representing 10% of the issued shares as of the approval date in 2019[119]. - The maximum number of shares that can be purchased under the plan for the fiscal year ending December 31, 2025, is 8,329,172 shares, which would result in a 2% dilution for shareholders if fully allocated[120]. - Major shareholders include ASM International N.V. and ASM Pacific Holding B.V., each holding 103,003,000 shares, accounting for 24.73% of the company's equity[127].

Investment Rating - The report maintains a "Buy" rating for ASMPT with a target price of 69 HKD [6][4]. Core Views - The advanced packaging (AP) business is expected to drive revenue growth, with a projected market size of 4 billion USD by 2029, reflecting an 18% CAGR [3][4]. - Despite a decline in overall revenue for 2024, the AP segment showed a 23% year-on-year growth, becoming a key growth engine for the company [1][2]. Summary by Sections 4Q24 Performance Review - ASMPT reported 34.0 billion HKD in revenue for 4Q24, slightly exceeding market expectations, with a year-on-year decline of 10% for the full year [1]. - SEMI business revenue increased by 11% quarter-on-quarter, driven by sales growth in advanced packaging products [2]. - The TCB segment secured significant orders from leading HBM customers, marking a breakthrough in the logic and HBM applications [2]. 1Q25/2025 Outlook - The company anticipates 1Q25 revenue between 370-430 million USD, which is below market expectations [3]. - The demand for advanced packaging remains strong, with expectations for continued growth in this segment [3]. Investment Recommendations - The report projects net profits for 2025, 2026, and 2027 to increase by 75%, 58%, and 58% respectively, reaching 6.05 billion HKD in 2025 [4]. - The target price of 69 HKD is based on a 30x PE for 2026, considering the company's technological advantages in AI-driven advanced packaging [4].