Financial Data and Key Metrics Changes - The company reported a strong first half of 2022 with revenue growth of 10.1% year-on-year, despite challenges such as supply chain constraints and inflationary pressures [11][33] - Gross margin improved year-on-year and half-on-half, achieving over 40% for five consecutive quarters, driven by stronger performance in both SEMI and SMT segments [33][34] - Bookings were down year-on-year due to a high base effect but showed half-on-half growth, with a book-to-bill ratio of 1.12 [12][32] Business Line Data and Key Metrics Changes - The SEMI segment contributed 59% of the Group's revenue in Q2 2022, with growth in IC discrete units and certain advanced packaging solutions, while the Optoelectronics unit faced declines [35][36] - The SMT segment experienced year-on-year growth due to increased deliveries to automotive and industrial customers, although there was a quarter-on-quarter decline [37] - Automotive revenue grew at approximately 60% year-on-year, contributing about 20% to total revenues, while advanced packaging accounted for around 18% of total revenue [13][14][40] Market Data and Key Metrics Changes - China, including Hong Kong, remained the largest market but saw a moderation in its contribution to Group revenue, while Europe, Malaysia, the Americas, and Taiwan combined saw a year-on-year increase of around 47% [12][38] - The automotive market is expected to continue strong growth, particularly in electric vehicles, despite macroeconomic challenges [69][70] Company Strategy and Development Direction - The company is focusing on growth areas such as automotive and advanced packaging, with a comprehensive suite of solutions to meet sustained demand [10][27] - A share buy-back plan has been approved, reflecting management's confidence in the long-term strategy and growth prospects of the company [42][60] - The company aims to maintain a dividend payout policy of about 50% of profits annually, alongside the share buy-back initiative [41][43] Management's Comments on Operating Environment and Future Outlook - Management acknowledged the challenges posed by geopolitical conflicts, COVID-19 lockdowns, and inflation but expressed confidence in the long-term growth of the semiconductor capital equipment market [44][45] - The company remains optimistic about capturing substantial market share in high-growth sectors, supported by ongoing investments in R&D and innovation [45][46] Other Important Information - The company has a diversified customer base, with the top five customers accounting for less than 14% of total revenue, indicating low customer concentration risk [38] - The new Group CFO, Katie Xu, brings over 20 years of experience and aims to enhance financial performance and stakeholder engagement [28][30] Q&A Session Summary Question: Booking trends for different business segments in Q3 - Management expects Q3 bookings to follow seasonal trends, with a single-digit decline from Q2 levels, but still higher compared to pre-2021 levels [54][56] Question: Share buy-back plan rationale - The share buy-back plan is intended to demonstrate confidence in the company's long-term strategy, with management noting that the current share price is perceived as low [59][60] Question: Impact of inventory correction in the semiconductor industry - Management acknowledged the ongoing inventory correction but emphasized that long-term demand drivers remain strong, particularly in high-performance computing and automotive sectors [66][70] Question: Signs of slowdown in European automotive demand - While there are concerns regarding the impact of the Russia-Ukraine conflict, management remains optimistic about the automotive sector's strength, particularly in electric vehicles [69][74] Question: Guidance for the Chinese market - The decline in the Chinese market is attributed to both lockdowns and weak consumer sentiment, but long-term prospects remain positive due to ongoing investments in new capacity [78][79]
ASMPT(ASMVY) - 2022 Q2 - Earnings Call Transcript