- Adjusted net profit soared 193.5% YoY, beating consensus estimates by 28%.
- DBS maintained its "Buy" rating while raising its price target 42% to HK$185.
- The company guided for 37% year-over-year revenue growth in the second quarter.
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ASMPT Rises as Q1 Profit Beats Estimates by 28%
ASMPT (00522.HK) reported first-quarter adjusted net profit growth of 193.5%, beating analyst estimates by 28 percent on strong semiconductor and photonics demand.
"The SMT business’s strategic options and CPO technology’s progress are key catalysts for a re-rating," DBS analyst Jim Hin Kwong Au said in a note maintaining a "Buy" rating.
A 71.6% year-over-year surge in new orders drove the order-to-shipment ratio to 1.43. Revenue for the quarter grew 32%, about 2% ahead of consensus, fueled by higher-margin contributions from the company's semiconductor business.
The company guided for second-quarter revenue to grow 37% from the prior year, a figure 6.5% above market expectations. Following the strong results and outlook, DBS raised its price target on the stock to HK$185 from HK$130.
The bank lifted its 2026 and 2027 profit forecasts for ASMPT by 5% and 8%, respectively. The revision reflects a stronger-than-expected recovery in semiconductor business margins and sustained momentum in its Photonics division. The new HK$185 price target corresponds to a valuation of 45 times estimated 2026 earnings.
The robust results and bullish analyst commentary suggest a strengthening recovery in the semiconductor equipment market. Investors will be watching to see if the momentum in Co-Packaged Optics (CPO) technology can provide a sustained tailwind for the company through the rest of 2026.
This article is for informational purposes only and does not constitute investment advice.
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