Bank of America Securities: Upgraded ASMPT(00522) rating to "Buy" with a target price raised to HKD 150

Jingdong Finance APP has learned that Bank of America Securities issued a research report stating that ASMPT (00522) is expected to experience a more significant recovery from the second half of 2026 to the next two years, using a 2027 forecasted P/E ratio of 34 times. The target price has been raised from HKD 95 to HKD 150, and the rating has been upgraded from “Neutral” to “Buy.”

The bank believes that the group’s thermal compression bonding (TCB) equipment technology will be adopted by more different types of memory/logic chip manufacturers. The expansion of backend capacity and technological upgrades by semiconductor manufacturers may drive the group to sell more TCB equipment. It is expected that the group’s earnings per share will grow strongly over the next three years (compound annual growth rate over 30%), with revenue reaching mid-cycle to high levels, gross profit margin exceeding 40%, and the related revenue being sustainable.

Bank of America Securities stated that although they do not assume the group will hold more than 50% of the market share in the TCB field, they believe that a 20% to 30% market share is sufficient to support strong sales and EPS growth from the second half of this year to the next two years. However, due to chip manufacturers’ capital expenditure focus on front-end investments, the group’s sales in the first and second quarters of this year are expected to remain at low levels of HKD 3.6 billion and HKD 3.8 billion respectively (only at or below mid-cycle levels). But from the second half of this year (around HKD 4 billion per quarter) to 2027 (HKD 4-5 billion), a gradual recovery is expected.