ASMPT (00522) saw its shares rise more than 5% during morning trading. At the time of writing, the stock was up 4.85%, trading at HK$162, with a turnover of HK$226 million.
The company recently announced its first-quarter financial results, reporting revenue from continuing operations of HK$3.97 billion, a year-on-year increase of 32.0%. Notably, total new orders reached HK$5.67 billion, representing a significant quarter-on-quarter growth of 46.0%, substantially exceeding market expectations. The report indicated that ASMPT's first-quarter profit was approximately HK$324 million, a surge of 192.9% compared to the same period last year.
Citigroup issued a research report stating that it has raised the target price for ASMPT (00522) from HK$145 to HK$180, equivalent to a projected 2027 price-to-earnings ratio of 37 times, while maintaining a "Buy" rating. The bank highlighted the company's strong performance in the first quarter of this year, with the book-to-bill ratio rising to 1.43, a five-year high. The guidance for the second quarter also indicates a robust outlook.
The bank anticipates that with increased industry capital expenditure and a renewed focus on core business, the stock will be revalued to levels above its historical average. New opportunities are emerging in areas such as thermal compression bonding and optoelectronics, which are expected to become growth drivers by 2027 and beyond. Furthermore, new customer orders, advancements in HBM and logic technology migration, and the potential divestiture of the SMT business are all seen as potential positive catalysts for the share price.
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