ASM Pacific 522

[winston]

vested

Signs of recovery

3Q20 net profit grew 3.8% yoy, in line with our estimate but 23% below consensus.

It formed 72% of our full-year FY20F forecast.

ASMPT is well positioned to benefit from China’s semiconductor localisation trend due to its strong customer base in China and rapidly growing AP.

Reiterate Add with a TP of HK$120.6, based on 4x FY20F P/BV.

Source: CIMB

https://rfs.cgs-cimb.com/api/download?f ... 3F75934AF7

[winston]

vested

Valuation & Action

ASMPT’s earnings have been negatively impacted by the COVID-19 supply chain disruption
and Sino-US tension this year.

But with a stronger semiconductor industry recovery in 2H20, we expect better YoY growth ahead into 2021.

While we lower our earnings projections for 2H20 and 2021 by 29% and 14% due to near-term gross margin headwinds on unfavorable product mix, we expect better gross margin in the longer term on more advanced packaging business contribution.

We maintain our Outperform rating as it is trading at 23x our 2021 EPS estimate, at the cyclical low-end of the five-year average PE of 29x.

Our target price of HK$110 (from HK$123) is based on unchanged 25x average 2021-22F EPS, in the mid-range of its historical PE band, versus the peer average of 39x.

Source: KGI

[winston]

COMPANY PROFILE

ASM Pacific Technology Ltd is an investment holding company principally engaged in the manufacture of machines and tools used in semiconductor and electronic assembly industries.

The Company operates through three segments.

The Semiconductor Solutions segment is engaged in the development, production and sales of back-end equipment. Its products include CMOS image sensors (CISs), automated optical inspection tools, Industrial Internet of Things(IoT), advanced packaging tools, bonders, light-emitting diode (LED) equipment and test handlers, among others.

The Surface Mount Technology (SMT) Solutions segment is engaged in the provision of SMT solutions.

The Materials segment is engaged in lead frames businesses.

The Company operates businesses in China, the United Kingdom, Singapore and Malaysia, among others.

[winston]

not vested

ASM PACIFIC: 1Q21 Solution Demands Fierce, May Ride on Auto Sector Recovery

At ASM PACIFIC (00522.HK) 's results call conference, CEO Robin Gerard Ng Cher Tat said the demand for solution business has been fierce recently, where the new orders of semiconductor and SMT solution may exceed US$700 million in 1Q21.

While the global vehicle industry has started recovering from 2H20, Ng anticipated the semiconductor and SMT solution segments group to benefit therefrom, coupled with persistent growth in EV market, especially China.

Source: AAStocks Financial News

[winston]

vested

ASM Pacific Technology Ltd
Beneficiary of a semiconductor recovery

4Q20 net profit grew 8% yoy, in line with our forecast, thanks to its customers’ capacity ramp-up. FY20 formed 103% of our estimate.

We expect a 89% net profit jump in FY21F, underpinned by strong demand for mainstream bonders, EV semiconductors, and AP and CIS equipment.

Reiterate Add with higher TP HK$155.60, based on 4.5x FY21F P/BV.

Source: CIMB

https://rfs.cgs-cimb.com/api/download?f ... 185E68D49E

[winston]

vested

ANNOUNCEMENT OF UNAUDITED 2021 FIRST QUARTER RESULTS FOR THE THREE MONTHS ENDED 31 MARCH 2021

Record Bookings of US$1.01 Billion in Q1 2021
Backed By Broad-Based Demand

Revenue: +45%
Profit: +1970%
Cash: HK$4.6b

https://www1.hkexnews.hk/listedco/listc ... 100051.pdf

[winston]

not vested

ASM PACIFIC (00522.HK) Expects to Revive Solid New Order Growth in 2Q

ASM PACIFIC (00522.HK)'s new order volume ballooned over 73% YoY to US$1.01 billion in the first quarter, topping earlier forecast of US$700 million.

This was mainly driven by better-than-expected semiconductor and SMT solution performance under increasing industrial application and auto sector demand, justified CEO Robin Gerard Ng.

Ng assumed the company to revive a flattish order growth in the second quarter, as investors' upbeat view on semiconductor market will be salubrious to both sales and market share gain.

Source: AAStocks Financial News

[winston]

not vested

Don't expect the surge to last, says ASM

by Winnie Lee

ASM Pacific Technology (0522) says the strong performance in first-quarter bookings will be hard to sustain in the long term.

The supplier of semiconductor assembly announced the first-quarter net profit skyrocketed more than 21 times to HK$521.51million year-on-year but fell 48 percent quarter-on-quarter.

Bookings surged to an all-time high of HK$7.83 billion.
Revenue rose 45.6 percent from a year ago to HK$4.34 billion.

The company expects to record revenue of US$600 million (HK$4.68 billion) to US$650 million in the second quarter through a strong backlog.

Chief executive Robin Gerard Ng Cher Tat said the group planned to outsource to increase productivity to deal with the global chip shortage.

Meanwhile, the United States faces a national security crisis due to its lack of semiconductor production, Commerce Secretary Gina Raimondo told senators in a hearing on President Joe Biden's infrastructure plan.

The US is entirely reliant on China and Taiwan for semiconductors, Raimondo told members of the Senate Appropriations Committee.

Biden's US$2.25 trillion infrastructure proposal calls for US$50 billion for the National Science Foundation to create a technology directorate that would focus on semiconductor manufacturing, among other things.

UBS estimated that the chip shortage is taking a toll of 5 percent to 10 percent on global first-quarter sales of vehicles.

Source: The Standard

https://www.thestandard.com.hk/section- ... ,-says-ASM

[winston]

not vested

A good start to a robust FY21F

1Q21 net profit reached HK$522m, 30%/40% above our estimate/Bloomberg
consensus on 268bp GPM recovery and 28% revenue growth.

ASMPT’s guidance of c.20% qoq revenue growth in 2Q21F and strong\revenue growth in 2H21F shows that semiconductor industry is recovering.

Reiterate Add with a higher TP of HK$160, still b sed on 4.5x FY21F P/BV.

Source: CIMB

https://rfs.cgs-cimb.com/api/download?f ... 4A0351E3AF

[winston]

not vested

Apr 26, 2021

HSBC Research Raises ASM PACIFIC (00522.HK) TP to $143, Rated Buy

HSBC Global Research mentioned in its report that ASM PACIFIC (00522.HK) had delivered 1Q21 revenue down 12% quarterly but up 28% yearly to $4.34 billion, 2% and 3% higher than its estimates and street forecast.

The broker retained Buy on ASM PACIFIC at the target price $143, raised from $135.5.

Source: AAstocks.com