Citi: ASMPT 2Q Results, Guidance Strongly Beat Expectations; Reiterates Buy with TP at HKD250
I'm LongbridgeAI, I can summarize articles.Citi reiterates a Buy rating for ASMPTwith a HKD250 target price, citing strong Q2 results and guidance that beat expectations. Driven by semiconductor and SMT businesses, revenue rose 52% YoY to HKD4.936 billion. Citi highlights robust demand in advanced packaging, particularly AI-driven orders, and notes the high book-to-bill ratio of 1.43. Potential divestment of the SMT business could further enhance market position, though risks include AI investment slowdowns and export restrictions.
Citi said in a report that ASMPT (00522.HK) -2.500 (-1.792%) Short selling $26.16M; Ratio 3.535% 's 2Q results far exceeded market expectations and the company's prior guidance, driven by strong performances in both semiconductor and SMT businesses. Revenue for the period rose 52% YoY to HKD4.936 billion (about USD630 million), exceeding the company's guided range of USD540 million to USD600 million. Overall gross margin improved 2.9 ppts QoQ to 42.4%, also beating market and Citi forecasts.
ASMPT's 3Q revenue guidance midpoint is 11% above market consensus. Even based on the lower end of the guidance range, YoY growth would still reach 40%. The company's book-to-bill ratio remained at a high level of 1.43, while the SMT business recorded a record order volume. Citi said demand prospects for advanced packaging remain strong, while the mainstream semiconductor business continues to show resilience, leading the broker to reiterate its Buy rating.
Citi assigned ASMPT a TP of HKD250, based on a forecast 2027 P/E ratio of 40x. Citi noted that AI-driven advanced packaging orders, including thermocompression bonding for HBM and CoW applications, together with the continued recovery of mainstream semiconductor and SMT businesses, will support strong growth in the company's revenue and earnings. A potential divestment of the SMT business could further strengthen its market position as a leading supplier of advanced packaging solutions and drive valuation re-rating.
The broker listed downside risks including a slowdown in AI infrastructure investment, loss of orders from key customers, reduced demand for thermocompression bonding due to alternative technologies, intensified industry competition, and expansion of export restrictions to back-end equipment. (ad/da)(HK stocks quote is delayed for at least 15 mins.Short Selling Data as at 2026-07-28 16:25.)