ASMPT (0522) Q2 2024 earnings summary

Executive summary

• 1H 2024 group revenue was US$829M (HK$6.48B), down 17.1% YoY, with net profit at HK$314.2M, down 49.6% YoY but up significantly HoH; automotive remained the largest end-market at 24% of revenue.

• Advanced Packaging solutions, led by TCB, SIP, and photonics, contributed about 25% of group revenue and saw strong order momentum, driven by generative AI and HPC demand.

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

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 HoH.

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

• Q2 2024 revenue was US$427M (HK$3.34B), with gross margin at 40.0% and operating margin at 4.0%.

• Interim dividend per share was HK$0.35, down 42.6% YoY; payout ratio for 1H 2024 was 46%.

• 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 $400M, representing a 9.9% YoY and 6.4% QoQ decline, mainly due to SMT market softness.

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

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