Citibank: ASMPT (00522) third-quarter order record high guidelines far exceeded expectations

The Zhitong Finance App learned that Citibank released a research report saying that ASMPT (00522) orders for the third quarter reached a record high and the guidelines far exceeded expectations. The bank reaffirmed the “buy” rating, and the target price was HK$250.

ASMPT's third-quarter results were broadly in line with expectations. Driven by advanced packaging, SEMI's mainstream business and SMT, revenue was HK$5.247 billion, up 49% year over year and 6% quarterly, in line with the original guidelines of $630 million to US$690 million. Net profit of HK$533 million was lower than the market forecast of HK$578 million, but still in line with Citi's estimates.

According to Citi, orders for the third quarter reached a record high of HK$8.8 billion. Among them, SEMI orders rose 172% year on year and 32% from quarter to quarter. SMT orders also reached new highs, up 122% year on year and 19% quarter on quarter.

Management expects revenue for the fourth quarter to be between US$670 million and US$730 million, which means the median increase of about 38% year over year, about 9% higher than market expectations, and the lower limit is also higher than market expectations. Citi is optimistic that demand for advanced packaging is supported by order trends.