Understanding the Market | ASM Pacific Technology (ASMPT) is now up nearly 5% as TSMC's CoWoS technology sees a breakthrough. The company's advanced packaging provides increased visibility for long-term growth
ASM Pacific Technology (ASMPT) is now up nearly 5%, as TSMC's CoWoS technology sees a breakthrough, increasing the company's visibility in advanced packaging for long-term growth. A research report by Macquarie indicates that ASMPT's visibility in advanced packaging for long-term growth is increasing, with the P/E ratio expected to rise significantly to 2.7 times, and the target price to increase by 88% to HKD 117.81. Open Source Securities points out that TCB equipment is expected to ramp up rapidly in 2025-2026, with a rebound in traditional packaging business, significant operating leverage driving profit improvement, and the potential to drive high growth in net profit in 2025-2026
According to the financial news app "Intelligence Finance", ASM Pacific Technology (00522) is currently up nearly 5%, with a 4.56% increase at the time of publication, trading at HKD 99.8 with a turnover of HKD 77.2982 million.
On the news front, media reports indicate that Taiwan Semiconductor Manufacturing Company's system-level wafer technology is expected to achieve a major breakthrough. The company stated that the chip stacking version using CoWoS technology is expected to be ready by 2027, integrating SoIC, HBM, and other components to create a powerful wafer-level system comparable to data center server racks, or even entire servers.
Macquarie Research released a report stating that ASM Pacific Technology's Advanced Packaging (AP) long-term growth visibility has increased. Earnings forecasts for the current and next year have been raised by 25% and 3% respectively. The valuation basis has also been raised from a forecasted P/B ratio of 1.6 times to 2.7 times, with the target price increasing by 88% to HKD 117.81. Considering the expected increase in AP orders from wafer fabs, the rating has been upgraded from "underperform" to "outperform".
Open Source Securities pointed out that although the traditional packaging business outlook for 2024 is not optimistic, TCB equipment shipments are expected to significantly exceed those in 2023. Additionally, the value and profit margin of TCB equipment are significantly higher than traditional packaging business, which is expected to drive a rebound in overall net profit in 2024. It is anticipated that TCB equipment will continue to see rapid growth in shipments in 2025-2026, coupled with a recovery in the traditional packaging business outlook and significant operating leverage driving profit improvement, leading to high growth in net profit in 2025-2026