ASMPT (0522) Q2 2024 earnings summary

Executive summary

• 1H 2024 revenue was US$829M (HK$6.48B), down 17.1% YoY and 5.8% HoH, with adjusted net profit at HK$314.6M, down 49.5% YoY but up 158.1% HoH.

• Advanced Packaging (AP) solutions contributed about 25% of group revenue, driven by generative AI, HPC, and photonics, with strong order momentum and major breakthroughs in Hybrid Bonding and TCB for HBM.

• Automotive remained the largest end-market, accounting for 24% of revenue, followed by communication and industrial sectors.

• Bookings for 1H 2024 were US$809M, down 3.6% YoY but up 11% HoH; backlog stood at US$820M (HK$6.40B).

• China’s revenue share increased to 36% in 1H 2024, while Europe and Americas declined.

Financial highlights

• Gross margin for 1H 2024 was 40.9%, up 67 bps YoY; operating margin was 5.8%, down 512 bps YoY but up 212 bps HoH.

• Q2 2024 revenue was US$427M (HK$3.34B), above mid-point of guidance, with gross margin at 40.0%.

• Adjusted net profit for 1H 2024 was HK$314.6M, down 49.5% YoY but up 158.1% HoH; interim basic EPS at HK$0.76.

• Interim dividend per share was HK$0.35, down 42.6% YoY.

• Cash and bank deposits at HK$5.44B; bank borrowings at HK$2.53B as of 30 June 2024.

Outlook and guidance

• Q3 2024 revenue guidance: US$370M–$430M, midpoint implies a 9.9% YoY and 6.4% QoQ decline, mainly due to SMT market softness.

• Long-term growth optimism is underpinned by trends in automotive electrification, AI, 5G/6G, smart factories, green infrastructure, and supply chain onshoring.

• SEMI mainstream recovery is slower than expected due to weak consumer spending; SMT bookings likely near the bottom.