ASMPT(HK:00522) Guotai Junan Securities·2024-03-28 16:00Investment Rating - The report assigns an "Accumulate" rating to the company [1]. Core Views - The company is expected to benefit from the gradual recovery of semiconductor demand and the increasing needs driven by AI, which may help it return to a growth trajectory [3][12]. - The advanced packaging equipment product portfolio is comprehensive, covering various chip packaging processes, including TCB, which is expected to see significant demand growth due to AI and digital economy trends [3][26]. - The company faced a significant decline in performance in 2023 due to industry demand downturn, but the fourth quarter showed signs of recovery with improved gross margins [12][15]. Summary by Sections 1. Global Leader in Semiconductor Backend Equipment Solutions - The company is a leading provider of semiconductor and electronic manufacturing hardware and software solutions, with a diverse product range [7]. - The advanced packaging market is expected to open new growth opportunities as demand recovers [12]. 2. AI and Digital Economy Driving High Computing Demand - The demand for high-performance chips, including GPUs and AI chips, is projected to grow significantly, with the global GPU market expected to reach $185.31 billion by 2027, reflecting a CAGR of 33% from 2021 to 2027 [21][24]. - The company is well-positioned to benefit from this trend due to its comprehensive coverage of advanced packaging solutions [3][29]. 3. TCB/Advanced Packaging Equipment Accelerating Iteration - The company’s TCB equipment is leading in precision and efficiency, with the second-generation TCB devices achieving improved throughput and accuracy [30][32]. - The TCB market is expected to grow significantly, with estimates suggesting a market size increase from $93 million in 2021 to $533 million by 2031, reflecting a CAGR of 19.1% [33]. 4. Financial Summary - In 2023, the company reported revenue of HKD 14.697 billion, a year-over-year decline of 24.10%, and a net profit of HKD 715.35 million, down 72.70% year-over-year [4][12]. - The fourth quarter of 2023 showed a gross margin improvement to 42.3%, up 8.7 percentage points year-over-year, indicating a potential recovery in profitability [14][15].