ASMPT (00522) Q1 2025 Earnings Call April 30, 2025 05:27 AM ET Speaker0 Good morning and good evening, ladies and gentlemen. This is Justin Tang, and I will be moderating today's call. On behalf of ASMPT Limited, welcome to our first quarter twenty twenty five investor conference call. Thank you for your interest and continued support. Please note that all participants will be in listen only mode during the presentation by the management. We will start the Q and A session after the presentation. During the ...

Q1 2025 Results Presentation 30th April 2025 Disclaimer The information contained in this presentation is provided for informational purpose only and should not be relied upon for the purpose of making any investment or for any other purpose. Some of the information used in preparing this presentation was obtained from third parties or public sources. The information contained in this presentation has not been independently verified. No representation or warranty, expressed or implied, is made as to, and no ...

ASMPT第一季度营收31.2亿港元，预估32亿港元；第一季度 净利润8,360万港元。 ...

香港交易及結算所有限公司及香港聯合交易所有限公司對本公告的內容概不負責，對其準確性或 完整性亦不發表任何聲明，並明確表示，概不對因本公告全部或任何部份內容而產生或因倚賴該 等內容而引致的任何損失承擔任何責任。 ASMPT LIMITED (於開曼群島註冊成立之有限公司) (股份代號: 0522) 截至二零二五年三月三十一日止三個月之 二零二五年第一季度未經審核業績公布 ASMPT Limited 董事會欣然宣布集團截至二零二五年三月三十一日止三個月之未經審核業績。 二零二五年第一季度概要 業績摘要 二零二五年第二季度銷售收入預測 將介乎 4.1 億美元至 4.7 億美元之間，以其中位數計按年+3.0%，按季亦+9.6% 有關上述經調整盈利及經調整每股基本盈利之詳情，請參閲本業績公告之「香港財務報告準則計量與非香港財 務報告準則計量之對賬」一節。 第1頁（共10頁） 第一季度銷售收入達到預測的中位數 新增訂單總額勝過預期 毛利率回升至 40.9% 高頻寬記憶體 TCB 支持客戶的大批量生產 擴大 TCB 客戶群 銷售收入為港幣 31.2 億元(4.02 億美元)，按年-0.5%，按季亦-8.2% 新增訂單總額為 ...

Financial Performance - Total sales revenue for 2024 was HKD 13.23 billion (USD 1.69 billion), a decrease of 10.0% year-on-year[10]. - Operating profit for 2024 was HKD 558 million, down 49.4% year-on-year[10]. - Basic earnings per share for 2024 were HKD 0.83, a decrease of 52.0% year-on-year[10]. - Adjusted earnings for 2024 were HKD 4.26 billion, down 42.8% year-on-year[10]. - The group's consolidated profit after tax for the year was HKD 342 million (adjusted to HKD 426 million according to non-Hong Kong Financial Reporting Standards), a year-on-year decrease of 51.9%[37]. - The total annual revenue for the group decreased by 10.0% to HKD 13.23 billion (USD 1.69 billion), with adjusted profit down by 42.8% to HKD 426 million[30]. - The group's adjusted profit decreased by 42.8% year-on-year to HKD 4.26 billion ($0.54 billion) in 2024[58]. - The total employee cost for the group in 2024 was HKD 5.19 billion, an increase from HKD 5.02 billion in 2023[81]. Orders and Backlog - The total amount of new orders for 2024 was HKD 12.75 billion (USD 1.63 billion), an increase of 4.0% year-on-year[10]. - As of December 31, 2024, the total backlog of orders was HKD 6.05 billion (USD 0.79 billion)[10]. - The total unfulfilled orders at the end of the year reached HKD 6.05 billion ($0.79 billion), with an order-to-delivery ratio of 0.96[55]. - Total new orders for the group reached HKD 12.75 billion ($1.63 billion) in 2024, reflecting a year-on-year increase of 4%[53]. Market Trends and Focus Areas - The company remains optimistic about growth in the semiconductor industry driven by AI applications and advanced packaging trends[14]. - The company is focusing on expanding its market presence in electric vehicles, 5G technology, and IoT[14]. - The company reported a decline in demand from consumer electronics and automotive sectors due to weak consumer spending[15]. - The demand for advanced packaging solutions is driven by the growth in artificial intelligence and high-performance computing applications, with significant orders from major AI companies[42]. - The automotive end market is projected to contribute approximately 20% or $340 million to the group's total sales revenue in 2024, despite a weak market[52]. Segment Performance - The semiconductor solutions segment recorded a year-on-year revenue growth of 24.1% in Q4 2024, driven by strong demand for advanced packaging solutions[30]. - The surface mount technology solutions segment experienced a year-on-year revenue decline of 21.3%, consistent with the overall weak market performance[30]. - The semiconductor solutions segment accounted for approximately 51% of total sales revenue in 2024, with a year-on-year growth of 6.9%[54]. - The surface mount technology solutions division recorded total new orders of HKD 1.11 billion (USD 142 million) in Q4 2024, down 15.8% quarter-over-quarter and 25.9% year-over-year, reflecting a weak global automotive and industrial end market[67]. Research and Development - The company plans to allocate a significant portion of new R&D resources to high-potential areas, including next-generation products like TCB and hybrid bonding[27]. - The group invested approximately HKD 2.08 billion in R&D in 2024, compared to HKD 2.05 billion in 2023, maintaining a strong commitment to technological leadership[71]. - The company is committed to ongoing cost optimization and improving overall profitability in the long term[31]. Dividends and Shareholder Returns - A special dividend of HKD 0.25 per share is proposed, with a total annual dividend of HKD 0.67 per share for 2024[30]. - The total dividend for the fiscal year 2024 is HKD 0.67 per share, down from HKD 1.39 per share in 2023[38]. - The board proposed a final dividend of HKD 0.07 per share and a special dividend of HKD 0.25 per share, compared to HKD 0.26 and HKD 0.52 per share respectively in 2023[38]. Sustainability and Governance - The company continues to focus on sustainability, achieving significant progress in environmental initiatives and aiming for a 25% female board representation by 2025[28]. - ASMPT is committed to achieving net-zero emissions by 2035, with interim targets of a 30% reduction by 2026 and 50% by 2030[82]. - The board aims to achieve a 25% representation of female directors by the end of 2025[83]. - The company emphasizes a positive corporate culture to support employee development and corporate citizenship[146]. Leadership and Management - Leadership transitions are underway, with key promotions aimed at enhancing R&D capabilities and aligning strategies with market demands[25]. - Dr. Hichem M'Saad appointed as CEO and Chairman of ASM International N.V. on May 13, 2024, previously served as CTO since May 16, 2022[111]. - ASM's executive team includes Mr. Guenter Walter Lauber, who has over 20 years of experience in the SMT equipment industry and has been with ASM since its acquisition of SMT business in 2011[113]. - The company emphasizes its leadership in advanced packaging technology and end-to-end solutions to meet stringent industry demands[114]. Corporate Governance - The board consists of ten directors, with two being female, and 60% of the board members are independent non-executive directors[148][152]. - The company has a strong governance structure with a diverse board, including members with backgrounds in law, finance, engineering, and technology[104][105][106][109][110]. - The board has complied with the listing rules requiring at least three independent non-executive directors, with two possessing relevant financial expertise[150]. - The company has adopted a board independence policy to ensure independent opinions are obtained[153]. Employee and Shareholder Engagement - The employee share incentive plan allows for the issuance of up to 40,667,133 new shares, representing 10% of the issued shares as of the approval date in 2019[119]. - The maximum number of shares that can be purchased under the plan for the fiscal year ending December 31, 2025, is 8,329,172 shares, which would result in a 2% dilution for shareholders if fully allocated[120]. - Major shareholders include ASM International N.V. and ASM Pacific Holding B.V., each holding 103,003,000 shares, accounting for 24.73% of the company's equity[127].

Investment Rating - The report maintains a "Buy" rating for ASMPT with a target price of 69 HKD [6][4]. Core Views - The advanced packaging (AP) business is expected to drive revenue growth, with a projected market size of 4 billion USD by 2029, reflecting an 18% CAGR [3][4]. - Despite a decline in overall revenue for 2024, the AP segment showed a 23% year-on-year growth, becoming a key growth engine for the company [1][2]. Summary by Sections 4Q24 Performance Review - ASMPT reported 34.0 billion HKD in revenue for 4Q24, slightly exceeding market expectations, with a year-on-year decline of 10% for the full year [1]. - SEMI business revenue increased by 11% quarter-on-quarter, driven by sales growth in advanced packaging products [2]. - The TCB segment secured significant orders from leading HBM customers, marking a breakthrough in the logic and HBM applications [2]. 1Q25/2025 Outlook - The company anticipates 1Q25 revenue between 370-430 million USD, which is below market expectations [3]. - The demand for advanced packaging remains strong, with expectations for continued growth in this segment [3]. Investment Recommendations - The report projects net profits for 2025, 2026, and 2027 to increase by 75%, 58%, and 58% respectively, reaching 6.05 billion HKD in 2025 [4]. - The target price of 69 HKD is based on a 30x PE for 2026, considering the company's technological advantages in AI-driven advanced packaging [4].

Investment Rating - The report maintains a "BUY" rating for the company with a target price (TP) revised to HK$98.00 from the previous HK$107.00, reflecting a 53% upside potential based on the current price of HK$64.05 [1][4][7]. Core Insights - The company reported 4Q24 revenue at the upper range of guidance, driven by strong Advanced Packaging (AP) growth, although weak margins in both Semiconductor (SEMI) and Surface Mount Technology (SMT) segments led to net income missing estimates. The report emphasizes a positive outlook on structural demand for TCB and other AP tools, particularly in AI applications, despite challenges in mainstream and non-AI sectors [4][10][11]. - The earnings forecasts for 2025 and 2026 have been cut by 28% and 16% respectively, reflecting adjustments in revenue and margin expectations due to competitive dynamics in the packaging business [4][7][27]. Revenue and Earnings Forecasts - Revenue projections for the years ending December are as follows: - 2025E: HK$14,934 million - 2026E: HK$17,908 million - 2027E: HK$20,458 million - Reported net profit estimates are: - 2025E: HK$1,286 million - 2026E: HK$1,771 million - 2027E: HK$2,265 million - Core EPS estimates are: - 2025E: HK$3.088 - 2026E: HK$4.253 - 2027E: HK$5.439 [8][31]. Financial Performance - The company reported a flat revenue of HK$3.4 billion in 4Q24, with gross profit margins decreasing to 37.2%, down from 42.3% in 4Q23. The operating profit margin fell significantly to 0.1% [10][20]. - The 4Q24 results showed a net income of HK$4 million, a drastic decline of 94% year-over-year, primarily due to weak demand in automotive and industrial sectors, along with a one-time restructuring cost of HK$95 million [10][20]. Market Position and Growth Potential - The report highlights that AP revenues are expected to exceed 30% of total revenues and contribute over 50% to net income from 2025 onwards, indicating a strong growth trajectory driven by AI demand [4][11]. - The company aims to capture 35-40% of the global TCB market share by 2027, with significant investments planned for R&D in AP tools [10][11]. Valuation Metrics - The report uses a valuation multiple of 23x the 2026E EPS to assess the company's value, reflecting a competitive landscape in the mainstream packaging business [7][26]. - Key financial metrics include: - Core P/E for 2025E: 20.7x - EV/EBITDA for 2025E: 14.1x - P/B ratio for 2025E: 1.7x [8][31].

Financial Performance - For the fiscal year ending December 31, 2024, the group reported sales revenue of HKD 132.3 billion (USD 16.9 billion), a decrease of 10.0% year-on-year[7]. - The adjusted profit for the year was HKD 4.26 billion, a decrease of 42.8% year-on-year[7]. - The group recorded total sales revenue of HKD 13.23 billion ($1.69 billion) for the year, a year-on-year decline of 10%, primarily impacted by a 22.9% decrease in the surface mount technology solutions segment[29]. - The operating profit decreased by 49.4% year-on-year to HKD 558 million due to declining sales revenue[33]. - The total comprehensive income for the year ended December 31, 2024, was HKD (232,379), a decrease from HKD 827,017 in 2023[67]. - The group reported a pre-tax profit of HKD 501,537 thousand for the year 2024, down from HKD 1,036,011 thousand in 2023, a decrease of approximately 51.6%[84]. - The total revenue for the group decreased from HKD 14,697,489 thousand in 2023 to HKD 13,229,079 thousand in 2024, a decline of about 10.0%[84]. Sales and Orders - The total new order amount for the year was HKD 127.5 billion (USD 16.3 billion), representing a year-on-year increase of 4.0%[6]. - The total new orders amounted to HKD 12.75 billion ($1.63 billion), representing a year-on-year growth of 4%, with the semiconductor solutions segment's new orders increasing by 36.7%[30]. - Total new orders for Q4 2024 reached HKD 2,154.1 million (USD 277 million), up 16.0% quarter-on-quarter and 73.3% year-on-year, with total new orders for the year at HKD 7,302.2 million (USD 936 million), an increase of 36.7%[35]. Market Trends and Projections - The total potential market for advanced packaging solutions is projected to expand from USD 1.78 billion in 2024 to USD 4.04 billion by 2029, with a compound annual growth rate of approximately 18%[11]. - The total addressable market (TAM) for TCB is projected to grow from $303 million in 2024 to approximately $1 billion by 2027, with a compound annual growth rate (CAGR) exceeding 45%[17]. - The automotive end market is projected to contribute approximately 20% or about $340 million to the group's total sales revenue in 2024, despite a weak market[25]. - The total potential market for automotive end market applications is expected to grow from approximately $1.3 billion in 2024 to $2.1 billion in 2029, with a compound annual growth rate of about 11%[27]. Profitability and Margins - The gross profit margin was 40.0%, an increase of 70 basis points year-on-year[6]. - The group's gross margin increased by 70 basis points to 40.0%, driven by a 418 basis point increase in the semiconductor solutions segment's gross margin[32]. - The gross margin for Q4 2024 was 42.6%, down 594 basis points quarter-on-quarter and 115 basis points year-on-year, primarily impacted by product mix and high base effects from the previous quarter[39]. - The overall segment profit for semiconductor solutions improved significantly from a loss of HKD 44,058 thousand in 2023 to a profit of HKD 303,509 thousand in 2024[84]. Research and Development - R&D investment for 2024 was approximately HKD 2,080 million, compared to HKD 2,050 million in 2023, with over 2,400 R&D staff and more than 2,000 patents filed[48]. - The company is committed to collaborating with external institutions and R&D experts to accelerate innovation and enhance advanced packaging solutions capabilities[50]. Dividends and Shareholder Returns - The company plans to distribute a total dividend of HKD 0.67 per share for the fiscal year, down from HKD 1.39 per share in the previous year[8]. - The proposed final dividend for the year ending December 31, 2024, is HKD 0.07 per share, a decrease from HKD 0.26 per share in 2023, with a total payout of HKD 29,152,000 for 416,458,633 shares[112]. - The proposed special dividend for the year ending December 31, 2024, is HKD 0.25 per share, down from HKD 0.52 per share in 2023, totaling HKD 104,115,000 for 416,458,633 shares[112]. Employee and Corporate Governance - The total employee cost for the group was HKD 5.19 billion, an increase from HKD 5.02 billion in 2023, reflecting the company's commitment to fair compensation[59]. - The group employed approximately 10,600 employees as of December 31, 2024, with a significant presence in China, Singapore, and Germany[59]. - The company aims to achieve a female board representation of 25% by the end of 2025, reflecting its commitment to diversity and inclusion[61]. - The company’s audit committee consists of four independent non-executive directors and one non-executive director, ensuring robust oversight[134]. - The company has complied with all corporate governance codes as per the listing rules during the fiscal year[132]. Financial Position and Liabilities - The group's cash and bank deposits at the end of 2024 amounted to HKD 5.10 billion, up from HKD 4.80 billion at the end of 2023[33]. - The group's debt-to-equity ratio increased to 0.175 from 0.127 in the previous year, indicating a rise in leverage[51]. - The total non-current liabilities increased from HKD 2,145,930 thousand in 2023 to HKD 4,309,638 thousand in 2024, an increase of approximately 100.7%[72]. - The total equity decreased from HKD 15,803,958 thousand in 2023 to HKD 15,291,501 thousand in 2024, a decline of about 3.2%[72]. Foreign Exchange and Risk Management - The company has established hedging contracts in HKD and EUR to mitigate foreign exchange risks associated with its operations[52]. - The net value of gains and losses from foreign currency forward contracts showed a loss of HKD 120,313,000 for the year ended December 31, 2024, compared to a gain of HKD 8,721,000 in 2023[102]. - The company reported a foreign currency net exchange gain of HKD 119,635,000 in 2024, compared to a loss of HKD 71,824,000 in 2023[102]. Compliance and Regulatory - The company is actively assessing global trends and regulatory developments to mitigate compliance risks and protect its reputation[63]. - The estimated effective tax rate for the group in Germany remains at 26.978% to 32.975% for the year ended December 31, 2024[109].

Group 1 - Goldman Sachs lowered the target price for ASMPT from HKD 108 to HKD 100 while maintaining a "Buy" rating, primarily benefiting from the growth in demand for artificial intelligence, high-performance computing, and high-bandwidth memory [1] - ASMPT's revenue for the fourth quarter is expected to be HKD 3.6 billion, representing a year-on-year increase of 5% and a quarter-on-quarter increase of 7%. Despite the continued growth in packaging, thermal compression bonding, and hybrid bonding tools, the company faces headwinds in the semi-finished products and SMT sectors due to moderate capital expenditure from downstream customers [2] - Goldman Sachs also revised down its earnings per share forecasts for 2025-2026 by 7% and 6% respectively [3]

Group 1 - Morgan Stanley has initiated coverage on ASMPT with a "Market Perform" rating and a target price of HKD 82 [1] - Despite a slow recovery in the semiconductor and electronics manufacturing industry, ASMPT has made breakthroughs in the high bandwidth memory (HBM) market [1] - Management forecasts a 3.5% year-over-year decline in sales revenue for Q4, estimating it to be between USD 420 million and USD 424 million, with new orders expected to remain flat [1] Group 2 - Surface mount technology continues to face challenges from market weakness and inventory digestion [2] - Morgan Stanley is optimistic about ASMPT's hot-press welding applications in the HBM market, projecting a 65% compound annual growth rate in related revenue from 2023 to 2026 [2]