Dahua Jixian: Lowering the target price of ASMPT (00522) to HK$68 for a “buy” rating

The Zhitong Finance App learned that Dahua Jixian released a research report saying that due to the increasingly complex geopolitical situation, the recovery of mainstream instruments is still uncertain, so the ASMPT (00522) “buy” rating was maintained, and the target price was lowered from HK$80 to HK$68.

The bank said that ASMPT's results for the first quarter of fiscal year 2025 were generally in line with expectations, revenue was in the middle of management's guidance, and profit margins and net profit rebounded quarterly. The momentum of advanced packaging tools continues to increase, and the line sees new orders or progress for advanced packaging hot press bonding (TCB) from memory and logic customers. In addition, the bank also lowered ASMPT's net profit forecast for the 2025 to 2027 fiscal year by 16.8%, 10.4%, and 9.3%, respectively, in part to reflect the slowdown in the recovery cycle due to the deterioration of the geopolitical environment.