HK Stock Market Move | ASMPT (00522) dropped more than 7% in the afternoon, discussion on the company's privatization terminated, Citigroup indicates negative short-term impact.

ASMPT (00522) fell by over 7% in the afternoon, dropping 7.01% to HK$74.3 with a trading volume of HK$318 million. In terms of news, ASMPT announced that the company has ceased discussions regarding a possible privatization with potential offerors. According to acquisition rules, the offer period for the potential privatization has ended with the publication of this announcement. Citigroup research report suggests that the announcement is negative news for ASMPT as some investors were hoping for privatization negotiations to support its share price. Citigroup believes that the termination of privatization discussions has already been partially reflected in ASMPT's share price, which has dropped by 16% since the initial announcement of privatization discussions. The bank also believes that a turning point in the growth of Thermal Compression Bonding (TCB) is imminent next year. Considering a leading high-bandwidth memory (HBM) manufacturer has made significant progress in TCB, orders may be released by 2025; opportunities for TCB to enter other HBM manufacturers are increasing; and qualification for non-solder flux TCB may be obtained by the end of the year.