HTSC·2025-07-24 04:02Investment Rating - The report maintains a "Buy" rating for ASMPT with a target price of 77.2 HKD, up from the previous 69 HKD [4][6]. Core Insights - ASMPT's 2Q25 revenue reached 34.0 billion HKD, showing a year-on-year increase of 1.8% and a quarter-on-quarter increase of 8.9%, closely aligning with Bloomberg consensus expectations [1][6]. - The order amount was 37.5 billion HKD, reflecting a year-on-year growth of 20.2% and a quarter-on-quarter growth of 11.9%, exceeding Bloomberg consensus expectations by 16% [1][2]. - The gross margin was reported at 39.7%, a slight decline of 33 basis points year-on-year and 119 basis points quarter-on-quarter, which is in line with expectations [1][2]. - Net profit for the quarter was 1.343 billion HKD, down 1.7% year-on-year but up 62.6% quarter-on-quarter, falling short of Bloomberg consensus expectations [1][2]. Revenue and Orders - The SEMI business revenue increased by 21.4% year-on-year and 0.8% quarter-on-quarter, driven by strong AI-related power management demand and improved OSAT capacity utilization in the Chinese market [2]. - SMT business revenue saw a year-on-year decline of 16.7% but a quarter-on-quarter increase of 22.6%, with orders increasing by 51.6% year-on-year and 29.3% quarter-on-quarter, driven by significant orders from smartphone clients and new AI server-related orders [2]. Advanced Packaging - Orders for TCB in the advanced packaging segment increased by 50% year-on-year in the first half of 2025, with successful installations for leading HBM3E 12H customers [3]. - The company is progressing towards mass production of AOR TCB for C2W applications, with competitive advantages in alignment and bonding accuracy for the second-generation HB tools expected to be delivered in Q3 [3]. Financial Projections - The report projects net profit increases of 3% for 2025, 8% for 2026, and 7% for 2027, resulting in net profits of 6.23 billion HKD, 10.35 billion HKD, and 16.27 billion HKD respectively [4][10]. - Corresponding EPS estimates are 1.50 HKD for 2025, 2.49 HKD for 2026, and 3.91 HKD for 2027 [4][10]. Valuation Metrics - The target price adjustment to 77.2 HKD is based on a 31x PE for 2026, compared to a comparable company average of 25.2x [4][32]. - The current market capitalization is approximately 26.32 billion HKD, with a closing price of 63.20 HKD as of July 23 [7].