Dahua Jixian: Raising the ASMPT (00522) target price to HK$92.4. The results for the second quarter are in line with expectations

The Zhitong Finance App learned that Dahua Jixian released a research report saying that the continuous improvement in ASMPT (00522) order momentum may mean the beginning of a new capital expenditure cycle, and the continued progress of artificial intelligence-related products may enhance investor confidence in the short term. Maintaining the “Buy” rating, the target price was raised from HK$68 to HK$92.4.

According to the report, ASMPT's second-quarter results were generally in line with expectations, revenue was in the middle of the guidance range, and orders greatly exceeded expectations due to large orders from smartphone customers. Additionally, Dahua Jixian lowered ASMPT's profit forecasts for the 2025 to 2027 fiscal year by 17.7%, 13.6% and 6.5%, respectively, to $801 million, $1,583 million and HK$2,127 billion, respectively. Taking into account adjusted revenue assumptions, including an increase in AP sales assumptions; a reduction in sales forecasts for SMT solutions to reflect the slow recovery in the first half of the year; a reduction in gross margin assumptions, which partly reflect the impact of foreign exchange; and an increase in expenditure assumptions, it is expected that R&D expenditure will remain high in the foreseeable future.