Key Takeaways:
ASMPT Ltd. (0522.HK) shares rose more than 5 percent in Hong Kong after the semiconductor equipment maker reported first-quarter profit grew 193 percent and new orders surged to a record.
"The first quarter showed strong performance, with the book-to-bill ratio hitting a five-year high of 1.43," a Citigroup report said, maintaining a "Buy" rating on the stock.
The company's net profit for the three months ended March 31 was 324 million Hong Kong dollars, up from the same period a year earlier. Revenue increased 32 percent to 3.97 billion HKD. The most significant figure was new orders, which reached 5.67 billion HKD, a 46 percent increase from the previous quarter, a sign of a strong cyclical recovery in the semiconductor industry.
The strong results prompted Citigroup to raise its price target on ASMPT to 180 HKD from 145 HKD. The bank sees new opportunities in thermal compression bonding (TCB) and optoelectronics becoming growth engines in 2027 and beyond, driven by demand for AI and high-bandwidth memory (HBM).
The bullish sentiment is shared by other analysts. DBS analyst Jim Hin Kwong Au also holds a Buy rating with a price target of 185 HKD, according to TipRanks. The consensus among analysts is a "Strong Buy."
The results suggest ASMPT is a key beneficiary of the capital spending increase in the AI sector. Investors will be watching for further catalysts, including new customer orders for HBM and logic technologies, and a potential spin-off of its SMT business.
This article is for informational purposes only and does not constitute investment advice.
