CICC: Upgraded ASM Pacific Technology Ltd. (00522) target price to HKD 98, maintaining "Outperform" rating.

Bank of China International released a research report stating that the importance of advanced packaging in integrated circuit production is increasing, and ASMPT (00522) holds a leading position in its equipment field. The bank has raised its target price-to-book ratio from the expected 2.3 times in 2026 to 2.5 times, corresponding to a 9% increase in the target price from HK$90 to HK$98. The bank believes that ASMPT, as a semiconductor packaging equipment manufacturer with strong advanced packaging capabilities, is a high-quality stock for long-term investment, especially in the context where advanced packaging is becoming increasingly crucial for IC miniaturization. Therefore, the bank maintains its "outperform the market" rating. Considering that ASMPT was affected by a one-time project in the third quarter of this year, the group's earnings forecast for 2025 has been lowered by 89% per share. Due to conservative assumptions on gross margin and operating expenses, the forecast for 2026-2027 has been adjusted downwards by 33%/10%. At the same time, the forecast for net asset value per share (BVPS) for 2025-2027 has been revised downwards by 3%.