ASM Pacific Technology (0522) AI Stock Analysis

• Market Cap: HK$25.91B
• Dividend Yield: 2.25%
• Average Volume (3M): 1.59M
• Price to Earnings (P/E): 74.7
• Beta (1Y): 0.70
• Revenue Growth: -9.99%
• EPS Growth: -51.96%
• Country: HK
• Employees: 10,600
• Sector: Technology
• Sector Strength: 94
• Industry: Semiconductors
• EPS (TTM): 0.20
• Shares Outstanding: 416,458,620
• 10 Day Avg. Volume: 1,459,379
• 30 Day Avg. Volume: 1,586,781
• PEG Ratio: -4.38
• Price to Book (P/B): 1.70
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 13.52
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: HK$65.53
• Price Target Upside: 5.27% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 3

• Rating: 61 Neutral
• Price Target: HK$65.00 ▲(4.42%Upside)

ASM Pacific Technology's stock score reflects a mix of strong technical momentum and robust financial stability, counterbalanced by high valuation concerns and declining financial performance. The stock's current momentum is positive, but overvaluation and profitability issues pose significant risks.

Positive Factors

Capex acceleration

Recent announcements underscore capex acceleration in high-bandwidth memory, significantly enlarging ASM Pacific Technology's addressable market.

Generative AI and HBM demand

ASMPT stands to ride the upswing in generative AI-driven high-bandwidth memory with a projected growth in the advanced-packaging market at an 18% CAGR through 2029.

Thermo-compression bonding

The company is well-positioned to benefit from the accelerated adoption of thermo-compression bonding, driven by the growth in generative AI.

Negative Factors

Consumer electronics demand

Tech giants like Microsoft and Meta are reducing their orders for cloud servers, impacting ASMPT's end-market demand for servers.

Revenue growth challenges

1Q25 revenue guidance missed expectations, and reflects cautious demand trends in non-smartphone consumer electronics in the short term.

US tariffs and trade tensions

Ongoing US tariff-related uncertainties continue to cloud the near-term growth trajectory of upstream equipment suppliers.

ASM Pacific Technology Business Overview & Revenue Model

Company Description

ASM 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 Money

ASM 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 Financial Statement Overview

Summary

ASM Pacific Technology shows a mixed financial performance. While the balance sheet is robust with low debt levels, the income statement reveals declining profitability and negative revenue growth, indicating operational challenges. The significant drop in free cash flow raises concerns about future growth and investment capabilities.

Income Statement

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

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

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.

Breakdown	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	13.23B	14.70B	19.36B	21.95B	14.70B
Gross Profit	5.29B	5.77B	7.97B	8.91B	5.14B
EBITDA	1.39B	1.93B	4.10B	4.79B	1.81B
Net Income	345.26M	715.35M	2.62B	3.17B	1.62B
Balance Sheet
Total Assets	23.67B	23.96B	24.78B	26.50B	23.16B
Cash, Cash Equivalents and Short-Term Investments	5.10B	4.80B	4.41B	4.88B	4.46B
Total Debt	4.56B	4.03B	3.76B	4.24B	4.57B
Total Liabilities	8.38B	8.16B	8.92B	11.09B	9.97B
Stockholders Equity	15.19B	15.69B	15.74B	15.28B	13.17B
Cash Flow
Free Cash Flow	566.24M	1.89B	2.45B	2.19B	2.23B
Operating Cash Flow	1.02B	2.35B	2.94B	2.54B	2.68B
Investing Cash Flow	-607.26M	-607.42M	-598.84M	-518.73M	311.84M
Financing Cash Flow	-234.63M	-1.62B	-2.55B	-1.72B	-969.35M

ASM Pacific Technology Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 62.25
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

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 62.25 is above the 20-day moving average (MA) of 58.41, above the 50-day MA of 56.00, and below the 200-day MA of 67.65, indicating a neutral trend. The MACD of 1.88 indicates Negative momentum. The RSI at 69.74 is Neutral, neither overbought nor oversold. The STOCH value of 85.17 is Negative, 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

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
1385	77 Outperform	$34.72B	36.81	9.53%	0.33%	-2.25%	-22.43%
2878	68 Neutral	€1.15B	14.56	7.58%	―	-26.17%	-48.28%
0085	67 Neutral	HK$2.82B	4.80	25.76%	6.47%	-22.20%	-14.43%
0522	61 Neutral	HK$25.91B	74.71	2.23%	2.25%	-9.99%	-51.96%
1347	61 Neutral	HK$70.34B	302.03	0.42%	0.46%	-2.06%	-83.44%
Sector *	57 Neutral	HK$14.24B	5.26	-5.75%	5.39%	9.34%	-42.23%
8490	50 Neutral	HK$101.59M	68.18	-21.90%	―	-8.34%	-8828.57%

ASM Pacific Technology Corporate Events

ASM Pacific Technology Schedules Board Meeting to Approve Interim Results

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

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

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.

ASMPT Limited Reports Q1 2025 Results with Strong TCB Demand

ASMPT Limited announced its unaudited first quarter results for 2025, reporting revenue of HK$3.12 billion, which met the mid-point of their guidance. Despite a slight year-over-year decline in revenue, the company saw better-than-expected bookings and a rebound in gross margin to 40.9%. The company’s focus on advanced packaging solutions, particularly TCB tools, has strengthened its market position, especially in the AI and high-bandwidth memory sectors. However, the company continues to face challenges with soft demand in the automotive and industrial markets.

ASMPT Limited Reports Q1 2025 Financial Results

ASMPT Limited, a company listed on the Hong Kong Stock Exchange, announced its financial results for the first quarter of 2025. The company reported a revenue of HK$3.12 billion, a slight decrease year-over-year, but bookings exceeded expectations at HK$3.35 billion. Despite a decline in operating and net profits compared to the previous year, the company saw significant quarter-over-quarter improvements. The gross margin rebounded to 40.9%, and the company expanded its TCB customer base, indicating a positive outlook for future growth.