ASMPT Conference Call Summary Company Overview - **Company**: ASMPT - **Industry**: Semiconductor and Advanced Packaging Key Points and Arguments TCB and Advanced Packaging Developments - ASMPT has installed over 500 TCB (Thermal Compression Bonding) devices globally, with significant progress in the storage sector, particularly with the XPM31 device entering high-volume production and 12-layer HBM4 devices in low-volume production [2][3][5] - The company is collaborating with clients on no flux TCB trials, indicating innovation in packaging technology [3][5] - A new generation HP Hadoop product is set to launch in Q3 2025, enhancing competitiveness in Hybrid Bonding [2][5] - Orders for systems exceeding 800G in Photonics and CPO (Co-Packaged Optics) technology have been secured, with expectations for large-scale production in the next two to three years [2][5] Market Demand and Performance - The growth of AI data centers is driving demand for efficient power management, leading to increased needs for wire bonding, die bonding, and SMT (Surface Mount Technology) placement tools [2][6][11] - In H1 2025, SMT business benefited from rising orders in consumer electronics and electric vehicles (EVs) in China, contributing significantly to overall performance [2][7] - Supply chain diversification has led to orders from EMS companies and local firms in India, primarily for mobile applications, resulting in a notable rebound in SMT business in Q1 [2][7] Financial Performance and Projections - ASMPT's performance in H1 2025 was strong, with new orders exceeding expectations and continued leadership in the PCB sector [3][7] - The company anticipates a slight decline in bookings for Q3 but expects a year-over-year increase in double digits [8] - HBM4 demand is projected to grow in H2 2025, with a target of achieving $100 million in revenue by 2027, capturing 35-40% market share [4][19][20] Industry Trends and Challenges - The automotive and industrial control sectors are currently experiencing weak demand, with contributions dropping significantly compared to the previous year [10][28] - Domestic market indicators show signs of recovery, with increased usage of OSET services and rising PCB production reflecting a positive industry outlook [12][28] - The relationship between SMT and SEMI markets is cyclical, with SMT expected to rebound following SEMI market recoveries [9] Technology and Equipment Insights - The delivery time for equipment, including TCB, is typically around six months, with adjustments made for large orders [21] - The second-generation Hyperbonding equipment shows improvements in bonding accuracy, speed, and footprint, enhancing competitiveness [26] - Advanced packaging revenue growth is expected from technologies like Photonics and high-bandwidth transceivers, driven by AI data center demand [27] Conclusion - ASMPT is positioned well within the semiconductor and advanced packaging industry, with strong growth prospects driven by AI and domestic market demands, despite challenges in certain sectors. The company is focused on innovation and maintaining a competitive edge through new product launches and strategic collaborations.

智通财经APP讯，ASMPT(00522)发布公告，于2025年7月29日，公司根据于上市规则的新第17章生效日 期前获采纳的该计划向15名获选雇员授予合共83.75万股股份。 ...

Core Viewpoint - ASMPT (00522) announced the grant of a total of 837,500 shares to 15 selected employees in accordance with the new Chapter 17 of the listing rules, effective before July 29, 2025 [1] Group 1 - The company is implementing a share grant plan for selected employees [1] - A total of 837,500 shares will be distributed among 15 employees [1]

Core Viewpoint - ASMPT has granted a total of 837,500 shares to 15 selected employees under its employee share award scheme, which was adopted prior to the effective date of the new Chapter 17 of the listing rules [1] Group 1 - The share award plan is part of the company's strategy to incentivize and retain key employees [1] - The announcement was made on July 30, 2023, indicating the company's ongoing commitment to employee engagement [1] - The shares granted are part of a broader initiative to align employee interests with shareholder value [1]

香港交易及結算所有限公司及香港聯合交易所有限公司對本公告的內容概不負責，對其準確性 或完整性亦不發表任何聲明，並明確表示，概不對因本公告全部或任何部分內容而產生或因倚 賴該等內容而引致的任何損失承擔任何責任。 根據公司僱員股份獎勵計劃授予股份 本公告乃由公司根據上市規則第17.06A、17.06B及17.06C條作出。 ASMPT LIMITED 茲參照於二零二零年三月二十四日獲公司採納該計劃的相關規則。根據該計劃的條款， 信託人會為獲選僱員之利益，以面值認購新股份或在聯交所購買股份。 （於開曼群島註冊成立之有限公司） （股份代號 ： 0522） 授予每名獲選僱員的獎勵股份數量乃根據該名獲選僱員於集團的職位、工作經驗、服務 年期及工作表現等因素而釐定。 於二零二五年七月二十九日，公司根據於上市規則的新第17章生效日期前獲採納的該 計劃向15名獲選僱員授予合共837,500股股份。公司將根據適用於該計劃的過渡安排遵 守上市規則的新第17章。 獎勵股份之詳情載列如下： 獎勵股份的購買價 ： 無 獎勵日期的股份收市價 ： 港幣69.35元 按獎勵日期的收市價每股股份港幣69.35元計算，獎 勵股份的市值為港幣58, ...

Core Viewpoint - Company ASMPT reported better-than-expected orders for Q2 2025, but profit improvement fell short of expectations, with revenue of HKD 3.4 billion (USD 436 million), a year-on-year increase of 1.8% and a quarter-on-quarter increase of 8.9% [1] Financial Performance - Q2 2025 revenue was HKD 3.4 billion (USD 436 million), with a gross margin of 39.7%, showing a year-on-year increase of 0.33 percentage points and a quarter-on-quarter decrease of 1.19 percentage points [1] - Profit for Q2 2025 was HKD 1.34 billion, a year-on-year decrease of 1.7% but a quarter-on-quarter increase of 62.5%, primarily influenced by a one-time tax credit [1] - New orders in Q2 2025 totaled USD 482 million, exceeding expectations [1] Business Segmentation - In H1 2025, 30% of revenue came from computer terminals, up from 7% in the same period of 2024, while automotive electronics accounted for 15%, down from 24% in 2024 [2] - Semiconductor revenue in Q2 2025 was USD 258 million, a quarter-on-quarter increase of 1% and a year-on-year increase of 20.9%, although orders decreased by 4.5% quarter-on-quarter and 4.6% year-on-year [2] - SMT business received USD 269 million in orders in Q2 2025, reflecting a quarter-on-quarter increase of 29.4% and a year-on-year increase of 51.2% [2] Growth Outlook - The company is experiencing growth in HBM (High Bandwidth Memory) and advanced logic, with TCB (Thermal Compression Bonding) orders increasing by 50% year-on-year in H1 2025 [1] - The company has completed equipment installations for major clients in the HBM sector and has begun small-scale production for HBM4 [1] Earnings Forecast and Valuation - The company raised its revenue forecast for 2025 by 2% to HKD 14.238 billion but lowered its profit forecast by 21% to HKD 988 million [2] - The current stock price corresponds to a P/E ratio of 26.6x for 2025 and 16.8x for 2026, with a target price of HKD 72, indicating a potential upside of 14% from the current price [2]

Core Viewpoint - ASMPT's 2Q25 earnings fell short of expectations primarily due to foreign exchange impacts on gross profit margin (GPM) and strategic research and development (R&D) investments, yet the blended book-to-bill (B/B) ratio improved to 1.11, indicating strong order gains across the semiconductor (SEMI) and surface mount technology (SMT) sectors, supporting robust revenue guidance for 3Q25 [1][2] Financial Performance - 2Q25 revenue increased by 2% year-over-year to HK$3.4 billion, aligning closely with midpoint guidance, while GPM and operating profit margin (OPM) decreased by 1.2 percentage points and 0.1 percentage points quarter-over-quarter to 39.7% and 5.0% respectively, mainly due to high operating expenses (OPEX) and strategic investments [2] - Adjusted net income (NI) decreased by 3% year-over-year to HK$131 million, reflecting the impact of OPEX and foreign exchange [2] Future Guidance - 3Q25 revenue guidance is set between US$445 million and US$505 million, exceeding market expectations by 1%, with the midpoint reflecting a 10.8% year-over-year and 8.9% quarter-over-quarter increase, driven by strong SEMI orders and SMT orders from a leading smartphone customer [3] - Management anticipates strong growth in advanced packaging (AP) and a recovery in mainstream demand, particularly from China and AI data centers, although there are concerns regarding soft near-term demand in automotive and industrial sectors [3] Advanced Packaging (AP) Insights - In 1H25, AP revenue constituted 39% of total revenue, marking a record high, with TCB orders increasing by 50% due to significant installations and shipments for HBM clients [4] - ASMPT has established the largest TCB installed base globally, surpassing 500 tools, and is expected to continue its growth trajectory in TCB and other AP tool orders in 2H25 [4] Valuation Adjustments - The revenue estimate for SMT has been increased by 3% to account for demand recovery driven by China and AI, while SEMI revenues have been reduced by 2% due to delayed TCB orders [6] - The group GPM is expected to remain above 40%, but net income forecasts have been lowered by 15%/4%/3% to reflect the impact of high OPEX [6]

Core Viewpoint - ASMPT reported a revenue of HKD 3.4 billion for Q2 2025, showing a year-on-year growth of 1.8% and a quarter-on-quarter growth of 8.9%, closely aligning with Bloomberg's consensus estimate of HKD 3.47 billion [1] Financial Performance - Revenue for Q2 2025 was HKD 3.4 billion, with a gross margin of 39.7%, a year-on-year decrease of 33 basis points and a quarter-on-quarter decrease of 119 basis points, in line with Bloomberg's expectation of 40% [1] - Net profit was HKD 134.3 million, a year-on-year decline of 1.7% but a quarter-on-quarter increase of 62.6%, falling short of Bloomberg's consensus estimate of HKD 147 million [1] - The company expects revenue for the next quarter to be between USD 4.45 billion and USD 5.05 billion, with a median growth of 10.8% year-on-year and 8.9% quarter-on-quarter, exceeding Bloomberg's consensus estimate of USD 4.65 billion [1] Business Segments - SMT orders saw significant growth, driven by AI and the Chinese market, with SEMI business revenue increasing by 21.4% year-on-year and 0.8% quarter-on-quarter [1] - Non-advanced packaging business is recovering steadily due to supply chain diversification, increased AI demand, and improved OSAT capacity utilization in China [1] - The company observed a trend of increasing orders in the SMT business, with a year-on-year increase of 51.6% and a quarter-on-quarter increase of 29.3% [1] Advanced Packaging Developments - Orders for TCB in advanced packaging increased by 50% year-on-year in the first half of 2025, with successful installations for leading HBM3E 12H customers [2] - The company is progressing from trial production to mass production for C2W AOR TCB in collaboration with leading foundries [2] - The second-generation HB tools are expected to be delivered to HBM customers in Q3, showcasing competitive advantages in alignment and bonding accuracy [2] Investment Recommendations - The target price has been raised to HKD 77.2, maintaining a "Buy" rating, with net profit estimates for 2025/2026/2027 increased by 3%/8%/7% to HKD 623 million/HKD 1.035 billion/HKD 1.627 billion [3] - The company is expected to benefit from AI-driven advanced packaging technology and long-term growth potential, with a target price based on a 31x PE for 2026 [3]

Summary of ASMPT Ltd Conference Call Company Overview - **Company**: ASMPT Ltd (0522.HK) - **Industry**: Technology Semiconductors - **Market Cap**: HK$27,912 million - **Current Price**: HK$70.20 - **Price Target**: HK$80.00 - **Rating Change**: From Equal-weight to Overweight Key Points Industry Dynamics - **AI Data Centers Driving Growth**: The demand for AI data centers is expected to significantly boost growth in ASMPT's mainstream tool business over the next 2-3 years, particularly in die bonders, wire bonders, and molding equipment [2][9][64] - **Shift in Power Infrastructure**: NVIDIA is leading a transition to 800 V HVDC data center power infrastructure, which will require advanced semiconductor components, thus increasing demand for ASMPT's tools [2][9] Financial Performance - **Earnings Estimates Raised**: EPS estimates for 2025, 2026, and 2027 have been increased by 36%, 4%, and 12% respectively, reflecting improved revenue assumptions and the anticipated growth from AI data centers [5][53] - **Revenue Growth Projections**: Expected revenue growth of 16% in 2026, driven by recovery in auto and industrial demand, increased TCB shipments, and AI data center demand [27][55] Market Position - **Auto & Industrial Mix at Historical Low**: The auto and industrial segment has dropped to 23% of revenue from a peak of 41% in 1H22, indicating limited downside risk as recovery is anticipated in 2026 and 2027 [4][10][64] - **Strong Competitiveness in China**: ASMPT is positioned as a strong competitor in advanced packaging and HBM development in China, benefiting from increased capital expenditure [3][21] Risks and Challenges - **Potential for Continued Soft Demand**: There is a risk that soft demand in the auto and industrial sectors may persist, which could impact revenue growth [29][30] - **Technological Competition**: Competitors may catch up in TCB technology, which could affect order allocation [30] Valuation and Investment Thesis - **Attractive Valuation**: ASMPT is currently trading at 18x the 2026 EPS, below its 10-year historical average of 27x, suggesting an attractive entry point for investors [5][56] - **Long-term Growth Drivers**: The company is expected to benefit from advancements in CoWoS, HBM, silicon photonics, and CPO capacity expansion [64] Conclusion - **Upgrade to Overweight**: The upgrade reflects confidence in ASMPT's ability to leverage AI data center demand and recover from low auto and industrial demand, with a revised price target of HK$80.00 indicating a potential upside of 14% from the current price [1][7][56]

Group 1 - HSBC Global Research has raised the target price for ASMPT by 10% to HKD 73.7, maintaining a "Hold" rating [1] - The upward revision in earnings per share for ASMPT for 2025 and 2026 is 3% and 10% respectively, which remains below market expectations by 4% and 3% [1] - The latest gross margin forecasts for ASMPT from HSBC for 2025, 2026, and 2027 are 40.4%, 41.9%, and 42.6%, compared to previous forecasts of 39.3% and 40.2% for 2025 and 2026 [1] Group 2 - The report indicates that there is still uncertainty in the competitive landscape, which influences the decision to maintain the "Hold" rating [1]