

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]