ASMPT (0522) Q3 2024 earnings summary

Executive summary

• Q3 2024 revenue was US$428.5 million (HK$3.34 billion), flat sequentially and down 3.7% year-on-year, with gross margin improving to 41.0% from 34.2% a year ago.

• Adjusted net profit was HK$29.5 million, down 35.0% year-on-year and 78.5% quarter on quarter, mainly due to a HK$108 million forex loss.

• Bookings rose 7.1% year-on-year to US$406.1 million, with a book-to-bill ratio of 0.95 and a backlog of US$806 million.

• Advanced Packaging (AP), especially Thermo Compression Bonding (TCB), drove growth, offsetting SMT and mainstream segment softness; a major TCB order was won from a leading HBM player.

• The group announced the proposed disposal of its stake in AAMI to SOAC, unlocking value and providing immediate cash and shares.

Financial highlights

• Gross margin improved to 41.0%, up 94 bps quarter on quarter and 683 bps year-on-year, mainly due to semi segment strength.

• Operating margin was 5.3%, improving both sequentially and year-on-year.

• Adjusted net profit and EPS declined sharply both year-on-year and sequentially due to forex loss and market softness.

• Cash and bank deposits stood at HK$5.47 billion, with bank borrowings at HK$2.58 billion as of 30 September 2024.

• Basic EPS was HK$0.06, up 50.0% year-on-year but down 81.8% quarter on quarter; adjusted EPS was HK$0.08, down 27.3% year-on-year and 75.8% quarter on quarter.

Outlook and guidance

• Q4 2024 revenue is expected between US$380 million and US$460 million, with the midpoint down 3.5% year-on-year and 2.0% quarter on quarter.

• AP prospects remain strong, with TCB demand for HBM expected to remain robust into 2025; SMT bookings are bottoming out, but SEMI recovery is slower than expected.