Ge Long Hui·2026-01-22 03:05Core Viewpoint - ASMPT is evaluating options for its Surface Mount Technology (SMT) business, which may include sale, joint venture, spin-off, or public listing, indicating a strategic shift to focus on semiconductor and advanced packaging sectors [1] Group 1: Business Strategy - The move is seen positively by UBS, as it allows the company to concentrate on semiconductor and advanced packaging, improving operational efficiency and resource allocation [1] - The SMT business traditionally has lower profit margins and different industry cycles compared to the semiconductor sector [1] Group 2: Financial Outlook - UBS reports that if ASMPT opts for divestiture or spin-off, there is potential for structural profit margin and earnings improvement due to opportunities in advanced packaging, leading to a possible revaluation [1] - The bank has raised its earnings forecasts for ASMPT by 3% and 4% for the next two years, respectively, and increased the target price from HKD 95 to HKD 135, maintaining a "Buy" rating [1]