UBS: Raised ASM Pacific Technology (00522) Next year's earnings forecast, target price raised to HK$95.

UBS released a research report stating that the prospects of ASM Pacific Technology (00522) in 2026 are stable. Due to the lower gross profit margin in the second half of 2025 and the impact of business restructuring, the full-year earnings per share forecast has been lowered by 78% to 0.28 yuan; and the sales forecast for 2026 has been raised to a growth of 22%, with earnings per share forecast raised by 13% to 3.94 yuan, to reflect the improved visibility of advanced packaging and mainstream business. The "Buy" rating is maintained, with the target price raised from HK$83 to HK$95. The report points out that ASMPT management's latest revenue guidance for the fourth quarter of 2025 is expected to grow by a median of 7% per quarter, which is better than the market's general expectation of 4%, believed to be supported by the SEMI and SMT businesses. The guidance for new orders in the fourth quarter remains steady, with SEMI orders expected to grow by double-digit percentages per quarter, while SMT orders are expected to decline quarter-on-quarter due to a high base. Management also expects the AI opportunity in 2026 to benefit both advanced packaging and mainstream businesses, maintaining confidence in the TCB business.