ASMPT's stock price surged 5.08% during early trading, continuing its recent upward trajectory in the market.
The significant price movement is attributed to multiple positive developments. The company recently divested its U.S. subsidiary NEXX to Applied Materials for $120 million in cash, allowing it to exit a low-margin front-end deposition business and sharpen its focus on the high-growth back-end packaging segment. Additionally, ASMPT's first-quarter results significantly exceeded expectations, with adjusted profit reaching HKD 335 million (up 193.5% year-over-year) and revenue of HKD 3.97 billion (up 32.0% year-over-year).
More importantly, ASMPT's TCB equipment has secured orders from SK Hynix for HBM4 mass production worth approximately KRW 30 billion, with equipment unit prices nearly doubling compared to previous generations. The company's order book is reportedly filled through the second quarter of the following year. This development has prompted broker upgrades, with Huatai Securities maintaining a Buy rating and raising its target price from HKD 146 to HKD 200, while Everbright Securities highlighted that shipments toward HBM4 will further reinforce TCB demand prospects.
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