ASMPT (00522) shares rose more than 5% during intraday trading. As of the time of writing, the stock was up 3.82% at HK$122.30, with turnover of HK$231 million.
Citi released a research report stating that with rising capital expenditure in packaging and testing, especially strong demand for advanced packaging equipment, ASMPT (00522) is expected to see a valuation re-rating, and the bank has added the stock to its 30-day upside catalyst watch list.
The bank noted that China's largest packaging and testing company, JCET, announced that its board of directors has approved an increase in its 2026 capital expenditure budget from RMB 11 billion to RMB 18.2 billion, a rise of 65%. Citi expects more Chinese packaging and testing companies to also increase their capital expenditure.
The report pointed out that China is ASMPT's largest single market, accounting for 42% of the company's total revenue in the first half of 2026. The bank believes that against the backdrop of short-term bearish market sentiment and weak performance in the semiconductor equipment sector, this presents an opportunity to increase holdings in ASMPT.
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