According to a research report, J.P. Morgan Chase gave ASMPT (00522) an “increase in weight” rating. Due to being more cautious about the recovery prospects of the traditional packaging business, the earnings forecast per share for this year and next two years was lowered by 31% and 29%. Currently, it is expected that the traditional packaging business may not return to 2018 levels until 2026. However, Motong stressed that it has strong confidence in the company's AP business growth. It expects the incremental contribution of AI-related businesses to increase. The expected valuation has room to rise, and the target price will be raised from HK$100 to HK$120.
According to the report, as hot pressure welding (TCB) applications become more widespread, the company's advanced packaging (AP) development momentum is improving, and it continues to receive orders from chip foundries and OSAT, and customer interest in advanced high-bandwidth memories (HBM) such as 12Hi and 16Hi has increased. On the other hand, traditional packaging and SMT solutions are recovering slowly and are expected to be delayed for two to three quarters.