ASM Pacific 522

[winston]

Semiconductor firm expects record year

ASM Pacific Technology (0522) said its new orders and sales for this year are set to hit a record despite a traditionally weaker fourth quarter, as its two growth engines are in full swing.

Net earnings for the first nine months of 2014 had already beaten last year's annual profit by 143 percent, jumping 165.2 percent year-on-year to HK$1.36 billion, or HK$3.39 per share.

The performance of the world's largest semiconductor industry, assembly and packaging equipment supplier was helped by robust sales of the firm's back-end equipment and surface-mount technology, with orders for both segments surpassing their 2013 levels by about 20 percent.

The acquisition of Dover Corp's printer business contributed 14.2 percent to the SMT equipment sales.

"The integration continues to progress well," the company said.

Profit in the July-September quarter soared 186.5 percent to HK$782.4 million, with revenues jumping 56.4 percent to HK$4.85 billion.

As business tends to be thinner toward year-end for the semi-conductor industry, the company expects to receive fewer orders in the October-December quarter, insisting it was no sign of "a broader deterioration of the market."

"With the strong backlog on hand, we are very confident that the group will be setting a new billings record this year," the firm said in a filing.

Orders yet to be filled as of September 30 total HK$3.48 billion. Third-quarter sales were encouraging across major markets, with business in Europe, Japan and Taiwan growing over 50 percent.

Source: The Standard HK

[winston]

not vested

Good times roll for ASM

ASM Pacific Technology (0522) saw net profit almost double to HK$1.6 billion last year, with revenue and new orders hitting record highs.

The semiconductor assembly equipment maker yesterday posted revenue of US$1.83 billion (HK$14.27 billion), up 31.3 percent from 2013 and mainly driven by strong fourth-quarter growth in Europe, which accounts for 15 percent of earnings.

New orders soared 38 percent to US$1.91 billion, with chief executive Lee Wai-kwong expecting new orders in the first quarter to have a double-digit growth from the previous quarter.

Earning per share hit HK$3.99. A final dividend of HK$1.30 per share was declared, bringing the whole-year dividend to HK$2.10, up around 150 percent from a year earlier.

But the dividend payout ratio fell from 60.9 percent in 2013 to 52.7 percent. The group recorded a gross margin of 38 percent in the fourth quarter. Lee said the introduction of new products would help lower costs and lift gross margin.

Lee estimates the semiconductor market to grow further on rising demand of intelligent devices on vehicles. "Smart city development and the need for sensors are boosting semiconductor growth," Lee said. The stock fell 5.3 percent to HK$79.

Source: The Standard HK

[winston]

not vested

ASM reports shrinking revenue

ASM Pacific (0522), the world's largest assembly and packaging equipment supplier for the semiconductor and LED industries, said first-half revenue fell from a record high in the second half of last year to US$879 million (HK$6.85 billion), as new orders shrank and outlook turned dim.

Compared with the first six months of last year, net profit jumped 26 percent to HK$722.9 million, thanks to the acquisition of DEK printing business and the US dollar remaining strong versus the euro. Earnings per share rose 25.87 percent to HK$1.80.

"The whole-year payout ratio is expected to continue to remain between 50 to 60 percent," said ASM chief executive Lee Wai-kwong.

China continues to be the largest market and accounts for half of its revenue. But "the market demand in general was not as strong as last year amid China's economic growth slowing and the uncertainty in the global macroeconomic environment," Lee said.

"The depreciation of the Japanese yen also add the pressure from our Japanese competitors but we are still confident in the whole industry."

The revenue from its major business Back-end Equipment and SMT Solutions segment grew more than 30 percent and recorded US$240.1 million and US$187.4 million respectively.

A new factory in Singapore will be completed later this year.

Source: The Standard HK

[winston]

not vested

Jan 17, 2020

<Research Report>Citi Ramps up ASM PACIFIC (00522.HK) TP to $156; Reiterated Buy

Citigroup, in its report, said investors always underestimated the demand from advanced packaging.

TSMC had announced that its budget capex for 2020 was US$15-16 billion, of which 80% was for 7/5/3nm and 10% for mask and back-end process.

The broker assumed TSMC's investment in back-end process is positive to ASM PACIFIC (00522.HK).

The target price was hiked to $156 from $125 with rating reiterated at Buy, as the broker viewed that the semi-conductor market is set to ride on the 5G upgrade cycle and China capex.

Source: AAStocks Financial News

[winston]

not vested

Dec 13, 2019

<Research Report>Macquarie Cuts ASM PACIFIC (00522.HK) TP to $85; Downgraded to Underperform

Macquarie in its report predicted ASM PACIFIC (00522.HK) unlikely to outshine the market in the near term, mainly due to lack of catalysts to ward off low seasonality in 1Q20.

ASM PACIFIC was downgraded to Underperform from Neutral at the target price $85, cut from $100,with 2020-2021 EPS estimate respectively axed by 3%.

Source: AAStocks Financial News

[winston]

not vested

Nov 1, 2019

<Research Report>JPM: ASM PACIFIC (00522.HK) Kept Underweight on Disappointing 3Q19 Results

ASM PACIFIC (00522.HK) reported disappointing 3Q19 earnings (-63% YoY) and revenue (3% below low-end guidance), partly caused by deferred recognition of advanced packaging tool revenue.

The group's 4Q19 revenue guidance was 20% behind JPMorgan's forecast.

The broker retained ASM PACIFIC at Underweight, with a target of $75.

The company's price outstripped the market by 23% over the last three months, without notable fundamental improvement.

Source: AAStocks Financial News

[winston]

not vested

ASM PACIFIC(522)

Analysis：

Despite a challenging quarter with the COVID-19 outbreak, ASM Pacific (522) managed to register bookings of US$668.9 million which increased 45.3% and 50.2% over the same period of last year and the preceding three months, respectively.

The bookings for this quarter was the 2nd highest first quarter bookings after the record booking performance in Q1 2018.

All 3 business segments of the Group registered double-digit % bookings growth, QoQ and YoY.

Multiple factors drove the strong booking performance of the Group, including 5G infrastructure built up, localization of the China semiconductor supply chain, recovery of the Optoelectronic market and the Group`s strong position in Advanced Packaging.

The Group anticipated revenue in Q2 2020 to be in the range of US$500 million to US$580 million, representing QoQ growth of 15.2% to 33.6%.

Gross margin is expected to be in the range of 34.5% to 36.5%, higher than the 33.5% in Q1 2020.
(I do not hold the above stock)

Strategy：
Buy-in Price: $80.00, Target Price: $88.00, Cut Loss Price: $76.00

Source: Phillips

[winston]

not vested

April 22, 2020

<Result Ann>ASM PACIFIC 1Q NP Dives 79%; 2Q Bookings Tend to Fall Double-digit % QoQ

ASM PACIFIC (00522.HK) unveiled the unaudited 2020 first quarter results for the three months ended 31 March 2020.

Net profit of HK$23.596 million decreased 78.6% over the same period of last year, with EPS of HK$0.06.

Second quarter bookings tend to trend higher than first quarter in the past; however the company was of the view that the booking for Q2 2020 would decline double-digit % QoQ due to the adverse impacts caused by the unprecedented COVID-19 pandemic.

Source: AAStocks Financial News

[winston]

not vested

Apr 23, 2020

<Research Report>HSBC Global Research Cuts ASM PACIFIC (00522.HK) TP to $78; Rated Hold

ASM PACIFIC (00522.HK)'s 1Q20 EPS equaled $0.06, beating HSBC Global Research's expectation and street consensus.

During the period, the revenue was $3.4 billion with GM of 33.5%, both topping forecast, thanks to 5G infrastructure in mainland China and demand recovery.

The management's guidance for 2Q20 came as positive surprise, with estimated revenue growth of 15-35% QoQ, above HSBC Global Research's expectation and street consensus.

ASM PACIFIC was downgraded to Hold from Buy with target price axed to $78 from $106.

Source: AAStocks Financial News

[winston]

not vested

Apr 23, 2020

<Research Report>BofAS Adds ASM PACIFIC (00522.HK) TP to $105; 1Q Profit Beats

ASM PACIFIC (00522.HK) delivered a 1Q20 result beat and new booking strength.

BofA Securities expected the firm's 3Q momentum to slow down, with better-than-seasonal 4Q performance if global tech supply-demand dynamics normalize after the epidemic.

Overall, ASM PACIFIC was restated at Buy, with target hiked from $90 to $105.

Source: AAStocks Financial News