Zhi Tong Cai Jing·2026-01-22 03:16Core Viewpoint - UBS has upgraded ASMPT's earnings forecast for the next two years by 3% and 4% respectively, citing improved visibility in the TCB business, and has raised the target price from HKD 95 to HKD 135, maintaining a "Buy" rating [1] Group 1: Earnings Forecast and Valuation - ASMPT's earnings estimates for 2024 and 2025 have been increased by 3% and 4% respectively due to better growth visibility in the TCB business [1] - The valuation basis has been extended to 2027, predicting a price-to-earnings ratio of 24 times, with a new target price set at HKD 135 [1] Group 2: SMT Business Evaluation - ASMPT is evaluating options for its SMT business, which may involve sale, joint venture, spin-off, or public listing [1] - UBS views this move positively as it allows the company to focus on semiconductors and advanced packaging, optimizing operations and resource allocation [1] - The SMT business traditionally has lower profit margins and different industry cycles compared to the semiconductor sector, suggesting potential structural profit and earnings increases if ASMPT chooses to divest or spin off this segment [1] Group 3: Market Positioning - ASMPT is currently trading at a projected price-to-earnings ratio of 18 times for 2027, which is lower than its international peers [1]