Financial Performance - For the fiscal year ending December 31, 2024, the group reported sales revenue of HKD 132.3 billion (USD 16.9 billion), a decrease of 10.0% year-on-year[7]. - The adjusted profit for the year was HKD 4.26 billion, a decrease of 42.8% year-on-year[7]. - The group recorded total sales revenue of HKD 13.23 billion ($1.69 billion) for the year, a year-on-year decline of 10%, primarily impacted by a 22.9% decrease in the surface mount technology solutions segment[29]. - The operating profit decreased by 49.4% year-on-year to HKD 558 million due to declining sales revenue[33]. - The total comprehensive income for the year ended December 31, 2024, was HKD (232,379), a decrease from HKD 827,017 in 2023[67]. - The group reported a pre-tax profit of HKD 501,537 thousand for the year 2024, down from HKD 1,036,011 thousand in 2023, a decrease of approximately 51.6%[84]. - The total revenue for the group decreased from HKD 14,697,489 thousand in 2023 to HKD 13,229,079 thousand in 2024, a decline of about 10.0%[84]. Sales and Orders - The total new order amount for the year was HKD 127.5 billion (USD 16.3 billion), representing a year-on-year increase of 4.0%[6]. - The total new orders amounted to HKD 12.75 billion ($1.63 billion), representing a year-on-year growth of 4%, with the semiconductor solutions segment's new orders increasing by 36.7%[30]. - Total new orders for Q4 2024 reached HKD 2,154.1 million (USD 277 million), up 16.0% quarter-on-quarter and 73.3% year-on-year, with total new orders for the year at HKD 7,302.2 million (USD 936 million), an increase of 36.7%[35]. Market Trends and Projections - The total potential market for advanced packaging solutions is projected to expand from USD 1.78 billion in 2024 to USD 4.04 billion by 2029, with a compound annual growth rate of approximately 18%[11]. - The total addressable market (TAM) for TCB is projected to grow from $303 million in 2024 to approximately $1 billion by 2027, with a compound annual growth rate (CAGR) exceeding 45%[17]. - The automotive end market is projected to contribute approximately 20% or about $340 million to the group's total sales revenue in 2024, despite a weak market[25]. - The total potential market for automotive end market applications is expected to grow from approximately $1.3 billion in 2024 to $2.1 billion in 2029, with a compound annual growth rate of about 11%[27]. Profitability and Margins - The gross profit margin was 40.0%, an increase of 70 basis points year-on-year[6]. - The group's gross margin increased by 70 basis points to 40.0%, driven by a 418 basis point increase in the semiconductor solutions segment's gross margin[32]. - The gross margin for Q4 2024 was 42.6%, down 594 basis points quarter-on-quarter and 115 basis points year-on-year, primarily impacted by product mix and high base effects from the previous quarter[39]. - The overall segment profit for semiconductor solutions improved significantly from a loss of HKD 44,058 thousand in 2023 to a profit of HKD 303,509 thousand in 2024[84]. Research and Development - R&D investment for 2024 was approximately HKD 2,080 million, compared to HKD 2,050 million in 2023, with over 2,400 R&D staff and more than 2,000 patents filed[48]. - The company is committed to collaborating with external institutions and R&D experts to accelerate innovation and enhance advanced packaging solutions capabilities[50]. Dividends and Shareholder Returns - The company plans to distribute a total dividend of HKD 0.67 per share for the fiscal year, down from HKD 1.39 per share in the previous year[8]. - The proposed final dividend for the year ending December 31, 2024, is HKD 0.07 per share, a decrease from HKD 0.26 per share in 2023, with a total payout of HKD 29,152,000 for 416,458,633 shares[112]. - The proposed special dividend for the year ending December 31, 2024, is HKD 0.25 per share, down from HKD 0.52 per share in 2023, totaling HKD 104,115,000 for 416,458,633 shares[112]. Employee and Corporate Governance - The total employee cost for the group was HKD 5.19 billion, an increase from HKD 5.02 billion in 2023, reflecting the company's commitment to fair compensation[59]. - The group employed approximately 10,600 employees as of December 31, 2024, with a significant presence in China, Singapore, and Germany[59]. - The company aims to achieve a female board representation of 25% by the end of 2025, reflecting its commitment to diversity and inclusion[61]. - The company’s audit committee consists of four independent non-executive directors and one non-executive director, ensuring robust oversight[134]. - The company has complied with all corporate governance codes as per the listing rules during the fiscal year[132]. Financial Position and Liabilities - The group's cash and bank deposits at the end of 2024 amounted to HKD 5.10 billion, up from HKD 4.80 billion at the end of 2023[33]. - The group's debt-to-equity ratio increased to 0.175 from 0.127 in the previous year, indicating a rise in leverage[51]. - The total non-current liabilities increased from HKD 2,145,930 thousand in 2023 to HKD 4,309,638 thousand in 2024, an increase of approximately 100.7%[72]. - The total equity decreased from HKD 15,803,958 thousand in 2023 to HKD 15,291,501 thousand in 2024, a decline of about 3.2%[72]. Foreign Exchange and Risk Management - The company has established hedging contracts in HKD and EUR to mitigate foreign exchange risks associated with its operations[52]. - The net value of gains and losses from foreign currency forward contracts showed a loss of HKD 120,313,000 for the year ended December 31, 2024, compared to a gain of HKD 8,721,000 in 2023[102]. - The company reported a foreign currency net exchange gain of HKD 119,635,000 in 2024, compared to a loss of HKD 71,824,000 in 2023[102]. Compliance and Regulatory - The company is actively assessing global trends and regulatory developments to mitigate compliance risks and protect its reputation[63]. - The estimated effective tax rate for the group in Germany remains at 26.978% to 32.975% for the year ended December 31, 2024[109].

Group 1 - Goldman Sachs lowered the target price for ASMPT from HKD 108 to HKD 100 while maintaining a "Buy" rating, primarily benefiting from the growth in demand for artificial intelligence, high-performance computing, and high-bandwidth memory [1] - ASMPT's revenue for the fourth quarter is expected to be HKD 3.6 billion, representing a year-on-year increase of 5% and a quarter-on-quarter increase of 7%. Despite the continued growth in packaging, thermal compression bonding, and hybrid bonding tools, the company faces headwinds in the semi-finished products and SMT sectors due to moderate capital expenditure from downstream customers [2] - Goldman Sachs also revised down its earnings per share forecasts for 2025-2026 by 7% and 6% respectively [3]

Group 1 - Morgan Stanley has initiated coverage on ASMPT with a "Market Perform" rating and a target price of HKD 82 [1] - Despite a slow recovery in the semiconductor and electronics manufacturing industry, ASMPT has made breakthroughs in the high bandwidth memory (HBM) market [1] - Management forecasts a 3.5% year-over-year decline in sales revenue for Q4, estimating it to be between USD 420 million and USD 424 million, with new orders expected to remain flat [1] Group 2 - Surface mount technology continues to face challenges from market weakness and inventory digestion [2] - Morgan Stanley is optimistic about ASMPT's hot-press welding applications in the HBM market, projecting a 65% compound annual growth rate in related revenue from 2023 to 2026 [2]

Investment Rating - The investment rating for ASMPT is "Buy" (maintained) [1] Core Views - The traditional business is recovering slowly, with profit improvement expected to be driven by TCB volume growth [3][4] - The SMT business is dragging down the company's performance, with the recovery in 2024 not meeting expectations [3][4] - The company has adjusted its net profit forecasts for 2024-2026 downwards due to weak SMT demand, with expected profits of 4 billion, 12 billion, and 22 billion HKD respectively [4][6] Financial Summary - Q3 2024 revenue was 429 million USD, a slight increase of 0.1% quarter-on-quarter, within the guidance range of 370-430 million USD [3] - New orders increased by 1.5% quarter-on-quarter, with the semiconductor segment growing by 7%, while SMT orders declined by 5% [3] - The company expects Q4 2024 revenue to be between 380-460 million USD, with a median estimate indicating a 2% decline quarter-on-quarter [3] - Revenue projections for 2024-2026 show a decline in 2024 followed by growth in subsequent years, with year-on-year growth rates of -41%, 177%, and 88% respectively [4][6] Market Position and Outlook - The company is positioned to benefit from advancements in TCB technology, particularly in HBM applications, which are expected to drive future growth [5] - The current stock price of 83.75 HKD corresponds to P/E ratios of 81.7, 29.5, and 15.7 for 2024-2026 [4][6] - The traditional packaging business is still at the recovery starting point, with AI advanced packaging expected to remain a long-term focus [4]

Investment Rating - The report maintains an "Overweight" rating for ASMPT (0522 HK) [4] Core Views - Q3 2024 revenue exceeded expectations at $429 million (HK$3 34 billion), up 0 1% QoQ but down 3 7% YoY, beating market expectations by 4% [1] - Semiconductor Solutions revenue grew 14% YoY and 8% QoQ to $229 million, driven by strong demand for advanced packaging [1] - SMT revenue declined 18% YoY and 8% QoQ to $199 million due to slow recovery in the traditional semiconductor cycle [1] - Q3 2024 gross margin improved by 0 94 ppts to 41%, with Semiconductor Solutions margin up 4 ppts to 48 6%, offsetting a 3 4 ppt decline in SMT margin [1] - Net profit was HK$23 8 million, down 83% QoQ due to HK$108 million in FX losses, but would have been flat QoQ excluding FX impact [1] - New orders in Q3 2024 totaled $406 million, up 1 5% QoQ, driven by semiconductor business growth [1] - TCB equipment is expected to accelerate shipments in Q4 2024 and 2025, supported by AI-related capital expenditure and HBM customer orders [1] Financial Performance - 2024E revenue is projected at HK$13 248 million, with net profit of HK$492 million [2] - 2025E revenue is forecasted at HK$15 766 million, with net profit of HK$1 073 million [2] - 2026E revenue is expected to reach HK$17 345 million, with net profit of HK$1 632 million [2] - EPS for 2024E, 2025E, and 2026E is projected at HK$1 19, HK$2 59, and HK$3 94, respectively [2] Business Segments - Semiconductor Solutions revenue is expected to grow from HK$6 766 million in 2024E to HK$10 478 million in 2026E [6] - SMT revenue is projected to remain relatively flat, from HK$6 482 million in 2024E to HK$6 868 million in 2026E [6] - Gross margin for Semiconductor Solutions is expected to remain strong, while SMT margin continues to face pressure [6] Key Developments - TCB equipment secured a bulk order from a leading HBM manufacturer in October 2024, with deliveries expected in Q4 2024 and Q1 2025 [1] - The company continues to win orders from leading IDM and foundry customers for C2W and C2S applications [1] - AI-related advanced packaging demand is driving growth in TCB equipment orders and improving long-term gross margin prospects [1] Market Data - Current share price: HK$87 0 [4] - Market capitalization: HK$36 062 billion [4] - 52-week range: HK$65 05 - HK$119 [4] - 3-month turnover rate: 79 6% [4]

Financial Performance - For the third quarter of 2024, ASMPT Limited reported sales revenue of HKD 33.4 billion (USD 4.29 billion), a year-on-year decrease of 3.7% and a quarter-on-quarter increase of 0.1%[2]. - Adjusted profit for the quarter was HKD 29.5 million, down 35.0% year-on-year and down 78.5% quarter-on-quarter[9]. - The company forecasts sales revenue for the fourth quarter of 2024 to be between USD 3.8 billion and USD 4.6 billion, indicating a year-on-year decrease of 3.5% and a quarter-on-quarter decrease of 2.0%[1]. - Basic earnings per share were HKD 0.06, a year-on-year increase of 50.0% but a quarter-on-quarter decrease of 81.8%[2]. - The group reported adjusted earnings of HKD 29.5 million, a decrease compared to the previous year and quarter, primarily due to foreign exchange losses[10]. - For the three months ended September 30, 2024, the company reported a profit of HKD 23,845, a decrease from HKD 136,696 for the same period in 2023[17]. - The total comprehensive income for the period was HKD 454,537, significantly higher than HKD 5,025 in the previous year[17]. - The adjusted profit for the period, excluding restructuring costs, was HKD 29,524, with an adjusted profit margin of 0.7%[24]. - Basic earnings per share for the three months ended September 30, 2024, was HKD 0.06, compared to HKD 0.33 for the previous quarter[22][26]. - The company reported a total revenue of HKD 3,344,731 for the three months ended September 30, 2024, slightly up from HKD 3,474,436 in the same period last year[20]. Orders and Revenue Segments - The total new orders amounted to HKD 31.7 billion (USD 4.06 billion), reflecting a year-on-year increase of 7.1% and a quarter-on-quarter increase of 1.5%[9]. - The semiconductor solutions segment contributed USD 285 million in new orders, with a quarterly increase of 7.0% and a year-on-year increase of 40.1%[12]. - The semiconductor solutions segment's sales revenue was USD 229 million, reflecting a quarterly growth of 7.7% and a year-on-year growth of 13.7%[11]. - The SMT solutions segment's sales revenue was USD 199 million, down 7.5% quarter-on-quarter and down 18.2% year-on-year[13]. - The advanced packaging solutions, particularly TCB, continued to drive strong new order totals and sales revenue, benefiting from demand in generative AI and high-performance computing applications[6]. - The photonics and silicon photonics solutions contributed significantly to new order totals and sales revenue in the semiconductor solutions segment, driven by strong demand for 800G optical transceivers[7]. Profit Margins - The gross profit margin was 41.0%, up 683 basis points year-on-year and 94 basis points quarter-on-quarter[9]. - The operating profit margin was 5.3%, an increase of 343 basis points year-on-year and 129 basis points quarter-on-quarter[9]. - The gross margin for the semiconductor solutions segment improved to 48.6%, up 406 basis points quarter-on-quarter and 1,665 basis points year-on-year[11]. - The profit margin for the Semiconductor Solutions segment improved to 7.9% from 5.3% year-over-year[18]. - The operating profit margin improved to 5.3%, showing improvements both year-on-year and quarter-on-quarter[10]. Cash Position and Future Plans - The group maintained a strong cash position with total cash and bank deposits of HKD 5.47 billion and bank borrowings of HKD 2.58 billion as of September 30, 2024[10]. - The group plans to sell its stake in AAMI to SOAC, which may create additional value for shareholders due to growth potential in semiconductor materials[15]. - The company plans to continue focusing on market expansion and new product development to drive future growth[25]. Corporate Governance and Announcements - ASMPT announced a potential offer on October 14, 2024, under Rule 3.7 of the Hong Kong Code on Takeovers and Mergers[30]. - The unaudited profit figures mentioned in the announcement are considered profit forecasts under Rule 10 of the Code, requiring a report from ASMPT's auditors and financial advisors[30]. - ASMPT's auditors and financial advisors need additional time to complete their work and expect to release their report by November 11, 2024, or earlier[31]. - Shareholders and potential investors are advised to exercise caution when relying on the profit forecasts due to the announcement not meeting the standards set by Rule 10[31]. - The board of directors includes independent non-executive directors and executive directors, ensuring a diverse governance structure[32].

Financial Performance - For the six months ended June 30, 2024, ASMPT reported sales revenue of HKD 6.48 billion (USD 829 million), a decrease of 17.1% year-on-year and 5.8% half-on-half[8]. - The adjusted profit for the first half of 2024 was HKD 315 million, down 49.5% year-on-year but up 158.1% half-on-half[5]. - The gross profit margin for the second quarter of 2024 was 40.0%, down 6 basis points year-on-year and 184 basis points quarter-on-quarter[5]. - The total new orders for the second quarter of 2024 amounted to HKD 3.12 billion (USD 399 million), an increase of 3.5% year-on-year but a decrease of 2.4% quarter-on-quarter[5]. - The company declared an interim dividend of HKD 0.35 per share, down 42.6% from HKD 0.61 in 2023[9]. - As of June 30, 2024, the total backlog of orders was HKD 6.40 billion (USD 820 million)[5]. - The basic earnings per share for the first half of 2024 was HKD 0.76, a decrease of 50.0% year-on-year but an increase of 245.5% half-on-half[8]. - The operating profit margin for the first half of 2024 was 5.8%, down 512 basis points year-on-year but up 212 basis points half-on-half[5]. - The company expects revenue for the third quarter of 2024 to be between USD 370 million and USD 430 million, representing a year-on-year decrease of 9.9%[5]. Market Segments - In the first half of 2024, the group's advanced packaging solutions contributed approximately 25% of total sales revenue, amounting to about $210 million, driven by strong demand from generative AI and high-performance computing applications[12]. - The automotive sector accounted for approximately 24% of total sales revenue, contributing about $200 million, despite a slowdown in the automotive market[15]. - The communication market was the second-largest source of revenue, accounting for about 17%, with growth driven by high-end smartphones and photonic applications[17]. - The total new order amount for advanced packaging solutions saw significant growth both year-on-year and half-on-half, with TCB solutions leading the revenue contributions[12]. Research and Development - Research and development expenses for the first half of 2024 were HKD 993 million, slightly down from HKD 1.00 billion in the same period last year[7]. - The group plans to invest approximately HKD 250 million in additional operational expenditures for R&D in 2024, focusing on strategic areas including infrastructure[25]. - The group has submitted over 2,000 patents and patent applications to date, reflecting its commitment to innovation[25]. Financial Position - The group’s cash and bank deposits totaled HKD 5.44 billion, while bank borrowings stood at HKD 2.53 billion, indicating a solid liquidity position[18]. - As of June 30, 2024, the group's cash and bank deposits amounted to HKD 5.44 billion, an increase from HKD 4.80 billion as of December 31, 2023[26]. - The group's capital investments for the first half of 2024 totaled HKD 182 million, supported entirely by operational cash flow[26]. - The group’s debt-to-equity ratio increased to 0.163 as of June 30, 2024, from 0.127 as of December 31, 2023[26]. Employee and Management - The total employee cost for the first half of 2024 was HKD 2.53 billion, compared to HKD 2.49 billion in the same period of 2023[29]. - As of June 30, 2024, the group employed approximately 10,800 staff, excluding 800 flexible and outsourced employees[29]. - The remuneration for directors and other key management personnel during the period amounted to HKD 33,267,000, an increase from HKD 31,865,000 for the six months ended June 30, 2023[84]. Shareholder Information - The company declared an interim dividend of HKD 783,758 for the previous year, which was paid out during the current period[46]. - The total dividend declared for the six months ended June 30, 2024, was HKD 322.3 million, down from HKD 783.8 million in the same period last year, representing a decrease of 58.8%[63]. - The company has proposed a special dividend for the year 2023, reflecting its commitment to returning value to shareholders[40]. Acquisitions and Investments - The acquisition of Beijing Borui Advanced Technology Co., Ltd. was completed on April 28, 2023, for RMB 23,500,000 (approximately HKD 26,844,000)[86]. - The acquisition of Soft Rock Technologies Sdn. Bhd. was completed on February 16, 2023, for MYR 7,044,000 (approximately HKD 12,921,000)[86]. - The acquisition of Tech Rewards Solutions, S. de R.L. de C.V. was completed on July 4, 2023, for MXN 25,682,000 (approximately HKD 11,756,000)[86]. Corporate Governance - The company has complied with all provisions of the Corporate Governance Code as of June 30, 2024[103]. - The audit committee consists of four independent non-executive directors and one non-executive director with extensive experience in auditing, legal matters, and corporate governance[104]. - The company has adopted the standard code of corporate governance and confirmed compliance by all directors for the six months ending June 30, 2024[103].

Investment Rating - The report assigns a neutral investment rating to ASMPT (0522.HK) with expectations of revenue guidance for Q3 2024 indicating a decline compared to Q2 [32][33]. Core Insights - ASMPT reported Q2 2024 revenue of $427 million, a quarter-over-quarter increase of 6.5% but a year-over-year decrease of 14.1%. The gross margin was 40.0%, slightly down from the previous quarter [4][5]. - The semiconductor solutions segment showed strong performance with Q2 revenue of $213 million, up 21.0% quarter-over-quarter and 0.9% year-over-year, driven by TCB technology and demand from high-end automotive applications [6][7]. - The SMT solutions segment faced challenges, with Q2 revenue of $215 million, down 4.9% quarter-over-quarter and 24.8% year-over-year, primarily due to a slowdown in the automotive and industrial markets [8][9]. - The company expects Q3 2024 revenue to be between $370 million and $430 million, indicating a quarter-over-quarter decline of 6.4% and a year-over-year decline of 9.9% [9]. Summary by Sections Overall Performance - Q2 2024 revenue was $427 million, with a gross margin of 40.0% and an operating profit margin of 4.0%. New orders totaled $399 million, reflecting a quarter-over-quarter decrease of 2.4% but a year-over-year increase of 3.9% [4][5]. Revenue Breakdown by Business Semiconductor Solutions - Revenue for Q2 2024 was $213 million, with a gross margin of 44.5%. New orders amounted to $222 million, up 11.6% quarter-over-quarter and 37.0% year-over-year [6][7]. SMT Solutions - Revenue for Q2 2024 was $215 million, with a gross margin of 35.6%. New orders decreased to $177 million, down 15.7% quarter-over-quarter and 20.6% year-over-year [8][9]. Q3 2024 Guidance - The company maintains an optimistic outlook for advanced packaging, while the traditional packaging business is expected to recover slower than anticipated. The SMT market is expected to remain weak [9].

Investment Rating - The report maintains a "Buy" rating for ASMPT (0522.HK) [2] Core Views - The semiconductor recovery is slower than expected, with traditional packaging and SMT (Surface Mount Technology) businesses under pressure, while advanced packaging driven by AI is seen as a long-term growth point for the company [1][2] - The company reported Q2 2024 revenue of USD 427 million (HKD 3.34 billion), a year-on-year decrease of 14.3% but a quarter-on-quarter increase of 6.5%, exceeding previous guidance [1] - The semiconductor solutions segment saw revenue of USD 213 million, up 21% year-on-year, while SMT revenue was USD 215 million, down 25% year-on-year [1] Summary by Sections Financial Performance - Q2 2024 adjusted net profit was HKD 137 million, down 56% year-on-year and 23% quarter-on-quarter, with a net profit margin of 4.1% and EPS of HKD 0.33 [1] - The company’s guidance for Q3 2024 revenue is between USD 370 million and USD 430 million, indicating a quarter-on-quarter decrease of 6.4% [1] Order Trends - Total new orders in Q2 2024 were USD 399 million, down 2.4% quarter-on-quarter, primarily due to a decline in SMT orders [1] - New orders for the semiconductor business increased by 12% quarter-on-quarter to USD 220 million, driven by advanced packaging solutions [1] Long-term Growth Drivers - The demand for AI chips and HBM (High Bandwidth Memory) is expected to accelerate shipments of TCB (Thermal Compression Bonding) equipment in 2025/2026 [1] - The company is optimistic about the growth of its advanced packaging business, particularly in TCB and HBM equipment, due to strong customer demand and ongoing R&D progress [1] Profit Forecast and Valuation - The net profit forecast for 2024-2026 has been revised down to HKD 5.65 billion, HKD 13.41 billion, and HKD 20.04 billion, reflecting a year-on-year growth rate of -21.0%, +137.4%, and +49.4% respectively [1][2] - The report highlights the potential for significant revenue growth in advanced packaging, despite short-term pressures on traditional packaging and SMT businesses [1]

L 迁泰将投告 ASMPT (522 HK) SMT 及传统非我业务地联组期业务 부휴坏充是新版合 2024 年 7 月 25 日 | 中国香港本學体 SMT 远待统对境业务管承临菊地示 Q2 BB ratio 啊灌到 1 以下 ASMPT 发布 2Q24 业绩，2Q24 意款 33.4 亿港币，同比下降 14.3%，环比 增长 6.5%，符合此前的指引：毛利率同比下降 0.1pct，环比下降 1.8pct 圣 40.0%: 冷利润为 1.37 亿港币，同比下降 55.5%，环比下降 22.7%，並落 侏子彭拷一致预期 35%: 新增订半 31.2 亿港币，订半收入比（BB ratio） 回落科 1 以下, 主国汽车及工业终站市场编码予获 SMT 业务订单环比下降, 传统并装业务移复线设。公司预计 3Q24 容教中包贫将环比下降 6.4%，同 比下降 9.9%，计半环比也有长个住餐下降。表们切然看好公司 TCB 考先进 村菜业务的成长性，位 SMT 业务组期价持仓利汽车和工业宽茶编码范景， 传统对装业务完条修复较慢。 预计 2024/2025/2026 辛归草冷利润为 5.75/14.73/25.50 亿港币 ...