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ASM Pacific Technology Limited (HK:0522)
:0522
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ASM Pacific Technology (0522) AI Stock Analysis

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HK:0522

ASM Pacific Technology

(OTC:0522)

Rating:65Neutral
Price Target:
HK$75.00
▲(8.70% Upside)
The overall stock score reflects a mixed financial performance offset by strong technical indicators and positive earnings call insights. While the valuation appears stretched with a high P/E ratio, the company's growth prospects driven by AI demand and solid technical momentum provide a positive outlook.
Positive Factors
Market Opportunities
ASMPT stands to benefit from the increasing demand for generative AI-driven high-bandwidth-memory, which is expected to grow significantly.
Strategic Investments
Recent capex acceleration in high-bandwidth memory, with companies like SK Hynix and Micron investing heavily, is likely to expand ASMPT’s market opportunities.
Negative Factors
Consumer Demand
Soft consumer demand continues to be a drag on the company's growth despite AI-driven advancements.
Economic Uncertainty
Economic uncertainty and ongoing US–China tensions may weaken demand for consumer electronics, impacting ASMPT's business.
Trade Tensions
Ongoing US tariff-related uncertainties continue to cloud the near-term growth trajectory of upstream equipment suppliers.

ASM Pacific Technology (0522) vs. iShares MSCI Hong Kong ETF (EWH)

ASM Pacific Technology Business Overview & Revenue Model

Company DescriptionASM Pacific Technology (0522) is a leading provider of semiconductor assembly and packaging equipment, surface mount technology (SMT) solutions, and materials. The company operates primarily in the semiconductor and electronics manufacturing sectors, offering a broad range of products including die bonders, wire bonders, encapsulation solutions, and SMT systems. ASM Pacific Technology serves a global customer base, including semiconductor manufacturers and electronics producers, by delivering advanced technologies that enhance manufacturing efficiency and product quality.
How the Company Makes MoneyASM Pacific Technology generates revenue through the sale of its semiconductor assembly and packaging equipment, SMT solutions, and related materials. The company's key revenue streams include equipment sales, after-sales services, and spare parts. ASM Pacific Technology's revenue is significantly influenced by the demand in the global semiconductor and electronics manufacturing industries, which rely on its advanced technology for efficient production processes. The company also benefits from strategic partnerships and collaborations that enhance its technological capabilities and market reach, contributing to sustained earnings growth.

ASM Pacific Technology Earnings Call Summary

Earnings Call Date:Jul 22, 2025
(Q2-2025)
|
% Change Since: 12.75%|
Next Earnings Date:Oct 28, 2025
Earnings Call Sentiment Positive
The earnings call highlighted strong demand driven by AI across segments, with significant growth in Advanced Packaging and improved operating profits. However, challenges such as SMT revenue declines, uneven TCB orders, and foreign exchange impacts were noted. Overall, positive trends in bookings and revenue provide a promising outlook.
Q2-2025 Updates
Positive Updates
Strong AI-Driven Demand
The strong demand continues to be driven by AI tailwinds across Advanced Packaging (AP) and mainstream segments, positively impacting bookings and revenue guidance.
Advanced Packaging Growth
AP business increased its revenue contribution to around 39% of the group's revenue or approximately USD 326 million, driven by strong AI tailwinds. Orders in the first half were up 50% year-on-year.
Gross Margin Maintenance
The group maintained a gross margin above 40% despite foreign exchange headwinds in the first half of 2025.
Record TCB Tool Base
The group surpassed 500 TCB tools installed worldwide, maintaining the largest TCB installed base.
Revenue and Bookings Growth
Group's bookings reached USD 912.8 million, showing a 10.5% growth half-on-half and 12.4% growth year-on-year. Revenue increased by 8.9% quarter-on-quarter and 1.8% year-on-year.
Operating Profit Improvement
Operating profit reached HKD 329.3 million, showing a 79.5% half-on-half growth.
Revenue Growth in Key Markets
China registered year-on-year revenue growth, increasing to 36.7% of group revenue. AI demand supported growth in Korea and Taiwan as well.
Negative Updates
SMT Revenue Decline
SMT experienced revenue declines year-on-year and half-on-half, partially offset by growth in other segments.
Fluctuating TCB Orders
SEMI bookings were down 4.5% quarter-on-quarter and 4.6% year-on-year, affected by uneven AP order flow.
Foreign Exchange Impact
Unfavorable foreign exchange translation negatively impacted results, partially mitigated by tax credits.
Operating Expenses Increase
Operating expenses showed a 5.7% quarter-on-quarter increase, primarily due to strategic R&D and IT infrastructure investments.
Company Guidance
During the second quarter of 2025, ASMPT provided guidance indicating strong performance driven by AI tailwinds across both Advanced Packaging (AP) and mainstream solutions. The company achieved better-than-expected bookings, with revenue guidance for Q3 projected to exceed market consensus. Advanced Packaging's revenue increased to approximately USD 326 million, contributing around 39% of the group's total revenue for the first half of 2025. The group maintained a gross margin above 40% despite foreign exchange headwinds. Key growth drivers included continued demand for Thermo-Compression Bonding (TCB) tools, with repeat orders surpassing 500 tools globally. Bookings growth was also observed in China, driven by electric vehicles and consumer end markets. For Q3 2025, ASMPT expects revenue between USD 445 million and USD 505 million, reflecting a year-on-year increase of 10.8% and an 8.9% quarter-on-quarter rise at the midpoint.

ASM Pacific Technology Financial Statement Overview

Summary
ASM Pacific Technology exhibits mixed financial performance. The income statement shows declining profitability and revenue, signaling operational challenges. The balance sheet is robust with low debt, reflecting a conservative financial strategy. However, cash flow challenges, particularly the sharp decline in free cash flow, suggest potential constraints on future growth and investment.
Income Statement
55
Neutral
The company's gross profit margin has remained stable, indicating consistent profitability from its core operations. However, the net profit margin has significantly declined over the past year from 4.87% to 2.61%, suggesting challenges in converting revenue into net income. Revenue growth has been negative, with a decline of approximately 9.99% from the previous year, indicating potential demand issues or competitive pressures. The absence of EBIT in the latest year raises concerns about operational efficiency.
Balance Sheet
70
Positive
The balance sheet reflects a solid equity base with a debt-to-equity ratio of 0.30, indicating low financial leverage. The equity ratio is strong at 64.15%, suggesting a conservative capital structure and financial stability. Return on equity has decreased to 2.27%, showing reduced effectiveness in generating returns for shareholders. Despite these challenges, the company maintains a healthy asset structure.
Cash Flow
60
Neutral
The free cash flow has substantially decreased, with a negative growth rate of -70.10%, impacting the company's ability to fund operations and growth from internal resources. The operating cash flow to net income ratio is favorable at 2.96, indicating strong cash generation relative to net income. However, the reduced free cash flow to net income ratio of 1.64 highlights potential inefficiencies in capital expenditures.
BreakdownDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue13.23B14.70B19.36B21.95B14.70B
Gross Profit5.29B5.77B7.97B8.91B5.14B
EBITDA1.39B1.93B4.10B4.79B1.81B
Net Income345.26M715.35M2.62B3.17B1.62B
Balance Sheet
Total Assets23.67B23.96B24.78B26.50B23.16B
Cash, Cash Equivalents and Short-Term Investments5.10B4.80B4.41B4.88B4.46B
Total Debt4.56B4.03B3.76B4.24B4.57B
Total Liabilities8.38B8.16B8.92B11.09B9.97B
Stockholders Equity15.19B15.69B15.74B15.28B13.17B
Cash Flow
Free Cash Flow566.24M1.89B2.45B2.19B2.23B
Operating Cash Flow1.02B2.35B2.94B2.54B2.68B
Investing Cash Flow-607.26M-607.42M-598.84M-518.73M311.84M
Financing Cash Flow-234.63M-1.62B-2.55B-1.72B-969.35M

ASM Pacific Technology Technical Analysis

Technical Analysis Sentiment
Positive
Last Price69.00
Price Trends
50DMA
59.58
Positive
100DMA
56.48
Positive
200DMA
65.84
Positive
Market Momentum
MACD
2.64
Positive
RSI
66.55
Neutral
STOCH
52.14
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:0522, the sentiment is Positive. The current price of 69 is above the 20-day moving average (MA) of 65.34, above the 50-day MA of 59.58, and above the 200-day MA of 65.84, indicating a bullish trend. The MACD of 2.64 indicates Positive momentum. The RSI at 66.55 is Neutral, neither overbought nor oversold. The STOCH value of 52.14 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for HK:0522.

ASM Pacific Technology Peers Comparison

Overall Rating
UnderperformOutperform
Sector (60)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
77
Outperform
HK$41.65B45.819.53%0.28%-2.25%-22.43%
70
Outperform
HK$1.21B15.357.58%-26.17%-48.28%
65
Neutral
$28.15B114.891.55%0.87%-0.64%-39.74%
65
Neutral
HK$3.67B6.2525.76%4.97%-22.20%-14.43%
60
Neutral
€6.86B14.133.81%2.06%2.46%-32.72%
51
Neutral
HK$86.57B372.250.42%0.38%-2.06%-83.44%
45
Neutral
HK$98.06M68.18-21.90%-8.34%-8828.57%
* Technology Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
HK:0522
ASM Pacific Technology
69.00
-5.37
-7.22%
HK:8490
Niche-Tech Semiconductor Materials Limited
0.14
-0.03
-17.65%
HK:0085
China Electronics Huada Technology Company Limited
1.81
0.80
79.21%
HK:1347
Hua Hong Semiconductor Ltd.
44.00
26.02
144.72%
HK:2878
Solomon Systech (International) Ltd.
0.49
0.21
76.36%
HK:1385
Shanghai Fudan Microelectronics Group Co
31.10
20.08
182.09%

ASM Pacific Technology Corporate Events

ASMPT Limited Announces Supplemental Agreement for Asset Disposal Transaction
Jul 31, 2025

ASMPT Limited has announced a supplemental agreement related to a previously disclosed transaction involving the disposal of assets. The agreement ensures the continuity and stability of the operational management structure of the Target Company for 36 months post-transaction, with no changes to the board of directors or senior management. The transaction’s completion is contingent upon regulatory approval and other conditions, and shareholders are advised to exercise caution.

The most recent analyst rating on (HK:0522) stock is a Hold with a HK$67.00 price target. To see the full list of analyst forecasts on ASM Pacific Technology stock, see the HK:0522 Stock Forecast page.

ASMPT Limited Awards Shares to Employees to Boost Retention and Performance
Jul 29, 2025

ASMPT Limited, a company incorporated in the Cayman Islands, has announced the award of 837,500 shares to 15 selected employees under its Employee Share Incentive Scheme. The awarded shares are divided into performance-based and talent retention-based shares, with vesting dates extending to 2028. This initiative aims to align employee interests with the company’s long-term growth and profitability, with performance targets set against industry peers and specific vesting conditions to encourage retention.

The most recent analyst rating on (HK:0522) stock is a Hold with a HK$58.00 price target. To see the full list of analyst forecasts on ASM Pacific Technology stock, see the HK:0522 Stock Forecast page.

ASM Pacific Technology Sets New Guidelines for Board Nomination
Jul 22, 2025

ASM Pacific Technology has announced the terms of reference for its Nomination Committee, which is tasked with identifying and recommending qualified individuals for the company’s board of directors. The committee aims to ensure a diverse and skilled board composition that aligns with the company’s corporate strategy, thereby enhancing its governance and operational effectiveness.

The most recent analyst rating on (HK:0522) stock is a Hold with a HK$58.00 price target. To see the full list of analyst forecasts on ASM Pacific Technology stock, see the HK:0522 Stock Forecast page.

ASMPT Limited Sees Revenue Growth Amidst AI and EV Demand
Jul 22, 2025

ASMPT Limited reported a 0.7% year-over-year increase in revenue for the first half of 2025, driven by strong demand in AI and electric vehicle markets. Despite a decline in net profit year-over-year, the company saw a significant increase in profit compared to the previous half-year, supported by growth in bookings and advanced packaging solutions. The interim dividend was reduced compared to the previous year, reflecting a cautious approach amidst mixed market conditions.

The most recent analyst rating on (HK:0522) stock is a Hold with a HK$58.00 price target. To see the full list of analyst forecasts on ASM Pacific Technology stock, see the HK:0522 Stock Forecast page.

ASMPT Limited Declares Interim Dividend for 2025
Jul 22, 2025

ASMPT Limited, a company listed on the Hong Kong Stock Exchange, has announced an interim cash dividend of HKD 0.26 per share for the six months ending 30 June 2025. The dividend will be paid on 29 August 2025, with the ex-dividend date set for 11 August 2025, and the record date on 15 August 2025. This announcement reflects the company’s ongoing commitment to delivering shareholder value.

The most recent analyst rating on (HK:0522) stock is a Hold with a HK$58.00 price target. To see the full list of analyst forecasts on ASM Pacific Technology stock, see the HK:0522 Stock Forecast page.

ASMPT Limited Reports Strong 2025 Interim Results Amid AI Demand
Jul 22, 2025

ASMPT Limited announced its 2025 interim results, highlighting strong demand driven by AI advancements. The company reported a revenue of HK$3.40 billion for Q2 2025, showing a year-over-year increase of 1.8% and a quarter-over-quarter increase of 8.9%. Bookings also exceeded expectations, with a 20.2% year-over-year increase. Despite a slight decrease in gross margin, the company achieved a significant quarter-over-quarter increase in net profit by 62.6%. The results reflect ASMPT’s leadership in logic and memory sectors and its ability to capitalize on AI-driven market trends, positioning it favorably within the industry.

The most recent analyst rating on (HK:0522) stock is a Hold with a HK$58.00 price target. To see the full list of analyst forecasts on ASM Pacific Technology stock, see the HK:0522 Stock Forecast page.

ASM Pacific Technology Schedules Board Meeting to Approve Interim Results
Jul 8, 2025

ASM Pacific Technology has announced a board meeting scheduled for July 22, 2025, to discuss and approve the interim results for the first half of the year and consider the payment of an interim dividend. The outcomes of this meeting, including the interim results, will be published on July 23, 2025, potentially impacting the company’s financial outlook and shareholder returns.

The most recent analyst rating on (HK:0522) stock is a Hold with a HK$58.00 price target. To see the full list of analyst forecasts on ASM Pacific Technology stock, see the HK:0522 Stock Forecast page.

ASMPT Limited Announces AGM Results and New Director Appointment
May 7, 2025

ASMPT Limited, a company incorporated in the Cayman Islands, held its 2025 Annual General Meeting on May 7, 2025, where all proposed resolutions were passed by shareholders. Key resolutions included the adoption of financial statements, declaration of dividends, reappointment of auditors, and granting of mandates for share buybacks and issuance. Additionally, Ms. Koh Meng Meng Wendy was appointed as an independent non-executive director, enhancing the company’s governance structure.

ASMPT Limited Announces Board of Directors and Roles
May 7, 2025

ASMPT Limited has announced the composition of its Board of Directors and their roles, highlighting key appointments across its independent non-executive, non-executive, and executive directors. This update reflects the company’s commitment to strong governance and strategic leadership, potentially impacting its operational efficiency and stakeholder confidence.

Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.Date of analysis: Jul 25, 2025