CLSA Upgrades ASMPT 2026 Profit Forecast by 17%, Maintains Outperform Rating with HK$226.2 Target Price Amid Strong Q2 Beat

Stock News07-30

CLSA released a research report maintaining an "Outperform" rating for ASMPT (00522) and raising its 2026 earnings forecast by 17%. The firm largely kept its 2027 and 2028 earnings projections unchanged, setting a target price of HK$226.2 based on a 35 times 2027 forecast price-to-earnings ratio.

From a financial perspective, ASMPT's second-quarter adjusted net profit reached HK$638 million, surpassing market expectations by 76%, driven by robust revenue and strong gross margins. Revenue for the period was HK$4.94 billion, exceeding the midpoint of the company's guidance by 10.5%. Orders totaled HK$7.08 billion, significantly outperforming the company's expectations for both the semiconductor and SMT businesses, with a book-to-bill ratio of 1.43 times. The adjusted gross margin came in at 42.5%, beating market estimates by 2.8 percentage points.

The report noted that the third-quarter revenue guidance ranges from US$630 million to US$690 million, with a midpoint of US$660 million, representing a 46% year-on-year increase and a 5% quarter-on-quarter rise, which is 10% above market consensus. Management expects third-quarter orders to show high single-digit sequential growth, primarily driven by the thermo-compression bonding and optical communications segments. The thermo-compression bonding business is experiencing strong order momentum from advanced logic and memory customers, while the optical transceiver solutions segment continues to see steady revenue growth.

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