ASM Pacific Technology (0522) AI Stock Analysis

• Market Cap: $24.08B
• Dividend Yield: 2.42%
• Average Volume (3M): 1.90M
• Price to Earnings (P/E): 69.4
• Beta (1Y): 0.70
• Revenue Growth: -9.99%
• EPS Growth: -51.96%
• Country: HK
• Employees: 10,600
• Sector: Technology
• Sector Strength: 86
• Industry: Semiconductors
• EPS (TTM): 0.20
• Shares Outstanding: 416,458,620
• 10 Day Avg. Volume: 1,724,730
• 30 Day Avg. Volume: 1,903,446
• PEG Ratio: -0.98
• Price to Book (P/B): 3.78
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 21.64
• 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: $63.66
• Price Target Upside: 10.05% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 3

• Rating: 58 Neutral
• Price Target: HK$57.00 ▼(-1.47%Downside)

The most significant factor in the overall score is the financial performance, which shows declining profitability and cash flow issues, despite a strong balance sheet. Technical analysis indicates a cautious outlook, while valuation suggests the stock might be overvalued. The earnings call provides some positive guidance, but challenges remain, especially in the SMT segment.

Positive Factors

Earnings Growth

3Q24 adjusted earnings surge 174% y/y, continuously supported by AI growth.

Product Offering

ASMPT offers a broad range of back-end assembly and packaging equipment in its semiconductor solutions and is actively expanding its surface mount technology business.

Technology Adoption

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

Negative Factors

Earnings Decline

Adjusted earnings declined 53.5% year-over-year, and profitability was affected by margin contraction and elevated R&D investments.

Market Demand

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

Revenue Guidance

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

ASM Pacific Technology Business Overview & Revenue Model

Company Description

ASMPT Limited, an investment holding company, engages in the design, manufacture, and marketing of machines, tools, and materials used in the semiconductor and electronics assembly industries worldwide. It operates through Semiconductor Solutions and Surface Mount Technology Solutions segments. The company provides deposition process equipment, wafer separation equipment, AOI/FOL equipment, die attach equipment, wire bonding equipment, dispensing equipment, encapsulation solutions equipment, and CIS equipment. It also offers singulation, trim, and form systems; LED testing, sorting, and taping systems; sintering equipment; and test and finish handling systems. In addition, the company offers surface mount technologies; advanced packaging solutions; encapsulation solutions; MEM solutions; power solutions; LED/opto solutions; photonics solutions; COB solutions; stacked die solutions; and smart SMT factory solutions, as well as image sensor applications. Further, it provides agency and logistics services. The company was formerly known as ASM Pacific Technology Limited and changed its name to ASMPT Limited in June 2022. ASMPT Limited was founded in 1975 and is based in Tsing Yi, Hong Kong.

How the Company Makes Money

ASMPT generates revenue through the sale of its comprehensive range of equipment and systems designed for semiconductor assembly and surface mount technology. Its key revenue streams include the sale of machinery and related software solutions to semiconductor manufacturers, electronics manufacturers, and other industrial clients. Additionally, the company earns from providing maintenance services, spare parts, and software updates. Significant partnerships with leading technology firms and ongoing investments in research and development further enhance its product offerings and contribute to its earnings.

ASM Pacific Technology Financial Statement Overview

Summary

ASM Pacific Technology exhibits mixed financial performance. The income statement shows declining profitability and revenue, which may signal operational challenges. The balance sheet remains robust with low debt levels, 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. The company must address profitability and cash flow issues to sustain long-term growth and shareholder value.

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: 57.85
• 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 57.85 is above the 20-day moving average (MA) of 54.99, above the 50-day MA of 53.51, and below the 200-day MA of 69.13, indicating a neutral trend. The MACD of 0.57 indicates Negative momentum. The RSI at 63.70 is Neutral, neither overbought nor oversold. The STOCH value of 80.14 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
Sector *	63 Neutral	$33.22B	5.99	-11.76%	1.91%	5.54%	-19.87%
0522	58 Neutral	$24.08B	69.43	2.23%	2.42%	-9.99%	-51.96%
SFDMF		$4.65B	25.11	9.53%	0.61%	―	―
RZF		€122.18M	10.00	7.58%	―	―	―
0085	66 Neutral	HK$2.84B	4.84	25.76%	7.50%	-22.20%	-14.43%
1347	61 Neutral	HK$68.99B	295.69	0.42%	0.47%	-2.06%	-83.44%
8490	39 Underperform	HK$84.66M	68.18	-21.90%	―	-8.34%	-8828.57%

ASM Pacific Technology Corporate Events

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.

ASMPT Limited Schedules Board Meeting for Q1 2025 Results

ASMPT Limited has announced that its Board of Directors will meet on April 29, 2025, to consider and approve the unaudited consolidated results for the first quarter of 2025. This announcement indicates the company’s commitment to transparency and timely financial reporting, which may impact its stakeholders by providing insights into its financial health and operational performance.

ASM Pacific Technology Announces 2025 AGM and Key Resolutions

ASM Pacific Technology, a company incorporated in the Cayman Islands, has announced its 2025 Annual General Meeting to be held on May 7, 2025, in Hong Kong. Key agenda items include the adoption of the 2024 financial statements, declaration of a final and special dividend, reappointment of auditors, and resolutions to authorize the buyback of shares and issuance of additional shares. These actions aim to enhance shareholder value and provide the company with flexibility in managing its capital structure.