Core Insights - ASMPT reported 3Q25 revenue of HKD 36.61 billion (USD 4.68 billion), a year-on-year increase of 9.5% and a quarter-on-quarter increase of 7.6%, aligning with expectations, primarily benefiting from AI-driven advanced packaging and mainstream businesses [1] - The gross margin was 35.7%, down 5.32 percentage points year-on-year and 4.05 percentage points quarter-on-quarter, mainly due to product mix effects [1] - The net loss was HKD 2.69 billion, significantly impacted by the Shenzhen factory liquidation; adjusted profit for the quarter was HKD 1.02 billion after excluding restructuring costs and inventory write-offs [1] Revenue and Orders - In 3Q25, semiconductor business revenue was USD 2.40 billion, down 6.5% quarter-on-quarter but up 5.0% year-on-year, with new orders of USD 2.08 billion, down 1.7% quarter-on-quarter and down 12.4% year-on-year [1] - SMT business secured USD 2.55 billion in orders, down 5.0% quarter-on-quarter but up 51.8% year-on-year, driven by advanced packaging demand and electric vehicle demand in China [1] Future Guidance and Developments - The company guided for 4Q25 revenue between USD 4.7 billion and USD 5.3 billion, with a midpoint indicating a year-on-year increase of 14.3% and a quarter-on-quarter increase of 6.8% [1] - Continuous development of new products in advanced packaging, including TCB solutions for 12-layer fourth-generation high-bandwidth memory, has received multiple HBM orders [2] - The company’s C2W ultra-fine pitch TCB plasma active removal solution has passed quality and reliability certification from leading wafer foundry clients and is ready for mass production [2] Profit Forecast and Valuation - Due to one-time order cancellations and the Shenzhen factory restructuring, the company has lowered its 2025 revenue forecast by 5% to HKD 135.60 billion and net profit forecast by 75% to HKD 2.5 billion, while maintaining the 2026 profit forecast [2] - The current stock price corresponds to a 22x 2026e P/E ratio, with a maintained outperform rating and a target price increase of 25% to HKD 90, reflecting a 24x 2026e P/E ratio and a 10% upside potential [2]