Amkor Technology(US:AMKR) Huachuang Securities·2025-04-30 15:27Investment Rating - The report assigns a neutral investment rating for Amkor, indicating expectations of performance within a range of -10% to +10% relative to the benchmark index over the next six months [49]. Core Insights - Amkor's Q1 2025 revenue reached $1.322 billion, a year-over-year decrease of 3.2% and a quarter-over-quarter decline of 18.8%, aligning closely with the upper end of the performance guidance [3][8]. - The gross margin for Q1 2025 was 11.9%, down 2.9 percentage points year-over-year and 3.2 percentage points quarter-over-quarter, while net profit was $26 million, reflecting a significant decline of 64.4% year-over-year [3][8]. - The company anticipates Q2 2025 revenue guidance between $1.375 billion and $1.475 billion, with a gross margin forecast of 11.5% to 13.5% [5][16]. Summary by Sections Overall Performance - In Q1 2025, Amkor achieved revenue of $1.322 billion, with communication business revenue exceeding expectations and other terminal markets performing as anticipated [3][8]. - The company reported a gross profit of $158 million, with a gross margin of 11.9%, and a net profit of $26 million, primarily impacted by increased R&D costs [3][8]. Performance by End Market 1. Communication Market: Revenue accounted for 40% of total sales, with a year-over-year decline of 19%, mainly due to decreased revenue from iOS devices [4][10]. 2. Automotive and Industrial Market: This segment represented 21% of revenue, with a 6% year-over-year decline, although demand for advanced packaging solutions remains strong [4][10]. 3. Consumer Market: Contributing 17% to total revenue, this market saw a 23% year-over-year increase, driven by the growing demand for wearable and connected devices [4][10]. 4. Computing Market: Accounting for 22% of revenue, this segment experienced a 21% year-over-year increase, with multiple collaborations in data centers and networking [4][11]. Q2 2025 Guidance - Amkor's revenue guidance for Q2 2025 is set at $1.375 billion to $1.475 billion, with a gross margin forecast of 11.5% to 13.5% [5][16]. - The company expects net profit guidance between $17 million and $57 million, with anticipated improvements in gross margin driven by appropriate capacity utilization [5][16].