2025-10-30 01:32Financial Data and Key Metrics Changes - The company reported revenue of $468.0 million, an increase of 7.6% quarter-on-quarter and 9.5% year-on-year, primarily driven by growth in SMT [9][10] - Adjusted gross margin for the quarter was 37.7%, lower than typical levels due to a larger contribution from SMT and lower SEMI gross margin [10][11] - Adjusted operating profit was $124.4 million HKD, down 26.6% quarter-on-quarter and 30.3% year-on-year [11] - Adjusted net profit was $101.9 million HKD, down 24.4% quarter-on-quarter but up 245.2% year-on-year [11] Business Line Data and Key Metrics Changes - SEMI segment revenue was $240.5 million, down 6.5% quarter-on-quarter but up 5.0% year-on-year, with bookings of $207.8 million, down 1.7% quarter-on-quarter and 12.4% year-on-year [13][14] - SMT segment revenue was $227.5 million, up 28% quarter-on-quarter and 14.6% year-on-year, with bookings of $254.7 million, down 5% quarter-on-quarter but up 51.8% year-on-year [15][16] Market Data and Key Metrics Changes - The company noted strong demand in China driven by EVs and high factory utilization across all sectors [3] - The company expects Q4 2025 revenue to be between $470 million and $530 million, indicating growth supported by momentum in both SEMI and SMT [17] Company Strategy and Development Direction - The company aims to maintain its leadership in advanced packaging, particularly in TCB for HBM4 and advanced logic, driven by AI infrastructure demand [3][17] - The strategic restructuring, including the liquidation of the Sun Churn AEC plan, is expected to improve cost competitiveness and agility in global manufacturing operations [8] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the outlook for TCB demand and noted that the AI ecosystem investments will drive future growth [17] - The company acknowledged uncertainties in the operating environment but emphasized its global presence to navigate potential impacts [17] Other Important Information - The company achieved a book-to-bill ratio of 1.04 for the quarter, maintaining a ratio above one since Q1 2025 [10] - The company experienced an isolated bookings cancellation in Q3 for panel deposition tools, which was a one-off occurrence [9][10] Q&A Session Summary Question: HBM4 transition and market share - Management confirmed they are leading the transition to HBM4 and have secured orders from two major HBM players, indicating a strong market position [20][23] Question: Impact of technology roadmaps on demand - Management noted that demand for TCB is driven by the timing of key customers' technology roadmaps, with expectations for growth in Q4 [25][26] Question: OpEx and future estimates - Management indicated that OpEx will remain similar to prior years with some marginal increases due to ongoing R&D investments [36][37] Question: TCB fluxless application timeline - Management expects significant ramp-up for fluxless TCB applications in 2026, with ongoing progress in logic applications [38][40] Question: Customer concentration for TCB equipment - Management confirmed a broadening of TCB customer base beyond leading foundries to include top AI customers [64] Question: Gross margin outlook for SEMI solutions - Management expects slight margin accretion for SEMI's margin in Q4, with long-term expectations for recovery to mid-40% levels [59][60]