2026-03-05 09:40Investment Rating - The report assigns ASMPT a "Outperform" rating with a target price raised by 5% to HKD 140 [1] Core Insights - ASMPT's management has significantly increased the total addressable market (TAM) forecast for thermal compression bonding (TCB) to reach USD 1.6 billion by 2028, indicating a compound annual growth rate (CAGR) of 30% from USD 759 million in 2025, which is higher than the previous forecast of USD 1 billion by 2027 [1] - The updated TAM reflects the rapid acceleration of investments in artificial intelligence logic and high bandwidth memory [1] - Management expresses optimism regarding high bandwidth memory in 20H and believes that if JEDEC standards continue to relax, thermal compression bonding technology can support these stackings [1] - Additionally, management views high bandwidth flash memory as a significant opportunity that has not been fully developed for thermal compression bonding [1] - The report revises earnings forecasts for 2026, 2027, and 2028 upwards by 6%, 6%, and 3% respectively, to account for strong revenue growth in SEMI business driven by artificial intelligence and advanced packaging, partially offset by the downturn in SMT business [1]