Morgan Stanley: Rated ASMPT (00522) "In line with the market" with a target price of 82 Hong Kong dollars.

Morgan Stanley has released a research report stating that they have resumed coverage on ASM Pacific Technology (00522), giving it a "synchronized with the market" rating with a target price of HK$82. Morgan Stanley is optimistic about ASMPT's thermocompression bonding (TCB) applications in the High Bandwidth Memory (HBM) market, expecting a compound annual growth rate of 65% in TCB-related revenue from 2023 to 2026. The report points out that the mainstream market recovery in the semiconductor and electronic product manufacturing industry is still slow, but ASMPT has made a breakthrough in the HBM market in the field of advanced packaging. Management predicts that fourth-quarter sales revenue will decline by 3.5% year-on-year to USD 420 million, with total new orders expected to remain flat on a quarterly basis. The semiconductor business is expected to grow compared to the third quarter due to the promotion of advanced packaging, but some of this growth will be offset by the decline in sales of mainstream products due to seasonal factors, while the surface mount technology (SMT) is expected to continue to be impacted by the ongoing weak market conditions and inventory digestion.