HK Stock Market Move | ASMPT (00522) rebounds by more than 3% after yesterday's heavy plunge of over 16%, with advanced packaging business still favored by institutions.

ASMPT (00522) rebounded by more than 3%, with the stock plummeting by over 16% the previous day. As of the time of writing, it was up 3.2% at 66.15 Hong Kong dollars, with a turnover of 3.57 billion Hong Kong dollars. On the news front, ASMPT previously announced its 2024 financial report, with sales revenue of 13.229 billion Hong Kong dollars (1.69 billion US dollars), a year-on-year decline of 10%; and net profit of 345 million Hong Kong dollars, a year-on-year decline of 51.7%. A total dividend of 32 Hong Kong cents per share was declared, including a final dividend of 7 Hong Kong cents per share and a special dividend of 25 Hong Kong cents per share. J.P. Morgan believes that ASMPT's performance in the last quarter was similar to that of the past few quarters, with weak mainstream packaging revenue and surface mount technology (SMT) business continuing to drag down profit margins. However, the company remains optimistic about its Thermo-Compression Bonding (TCB) business, stating that its total addressable market will achieve a compound annual growth rate of 45% and is expected to achieve 4 times revenue growth between 2024 and 2027. BOCI Securities pointed out that the structural demand for Thermo-Compression Bonding (TCB) and other advanced packaging equipment remains optimistic, and ASMPT has made steady progress in product certifications and order acquisition in the fourth quarter of last year and the first quarter of this year. The bank also noted that general semiconductor equipment and non-AI related applications are still factors dragging down performance, but it is expected that starting from 2025, ASMPT's advanced packaging business revenue will account for over 30%, and net profit contribution will exceed 50%. Therefore, it believes that the current stock price is undervalued.