ASMPT Shares Surge in Hong Kong Afternoon Trading on Strong Advanced Packaging Outlook

Stock News05-20 14:05

ASMPT (00522) saw its shares rise nearly 7% in afternoon trading. At the time of writing, the stock was up 4.43%, trading at HK$176.7 with a turnover of HK$394 million. The company previously announced the sale of its entire equity stake in its US subsidiary NEXX to Applied Materials for $120 million in cash. This move aims to streamline its business structure and sharpen its focus on backend packaging operations. Analysts suggest that divesting NEXX helps mitigate compliance and geopolitical sanction risks for the company while creating a window of opportunity for Chinese capital to access ASMPT's global platform. Huatai Securities noted that ASMPT's first-quarter order intake was robust, with AI demand extending from advanced packaging to mainstream backend processes. Furthermore, silicon photonics and CoPoS technologies are expected to unlock long-term growth potential. Everbright Securities added that, given the smooth progress of TCB and HB equipment, the commencement of shipments for HBM4 and 16-layer/20-layer HBM products is set to further bolster the demand outlook for TCB. The company is actively expanding its customer base in advanced packaging for memory and logic applications, with a positive long-term view on how its advanced packaging business will enhance both performance and valuation.

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