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2026-11-05 15:59:38 Citi published a report stating that ASMPT (00522.HK) announced its decision to retain its SMT business, as AI-driven demand has significantly improved the division's financial position. Management expects the global SMT total addressable market to grow at a CAGR of more than 20% from 2024 to 2027; SMT order market share has expanded from 24% in 2025 to the current 31% (from USD700 million to USD1.4 billion); AI applications and AP currently account for 50% and 25% of SMT orders respectively; SMT revenue may reach approximately USD1.6 billion by 2027, with a gross margin of 40% and segment profit margin of 20%. Citi estimated that this implies SMT net profit of about USD230 million (HKD1.8 billion), suggesting that the transaction valuation reported by Reuters implies a 2027 P/E ratio of 4x to 5x based on the updated SMT earnings, underestimating the value of SMT. Management is confident about the improved outlook, supported by order backlog that may continue to outpace the cyclical recovery. The broker expected ASMPT's share price to face short-term pressure because some investors had originally expected the company to spin off the SMT business for a re-rating as a pure semiconductor equipment stock, but the better-than-expected SMT forecast should improve ASMPT's earnings outlook. Citi maintained its Buy rating with a TP of HKD190. (ad/)~ AASTOCKS Financial News Website: www.aastocks.com This article was automatically translated by AI, the Chinese version should be considered the authoritative version. AASTOCKS.com Limited does not guarantee its accuracy or completeness and accepts no liability for any damages or losses arising from the use of this translation. | |