JP Morgan: Raise ASMPT (00522) target price to 175 Hong Kong dollars, expecting several catalysts in the future to drive stock price increases over the next few quarters.

J.P. Morgan has released a research report stating that ASM Pacific Technology (00522) performed well in the first quarter of this year and its guidance for the second quarter is also much higher than market expectations, mainly due to strong revenue from semiconductors and surface mount technology (SMT), as well as an improvement in semiconductor gross margin. J.P. Morgan predicts that ASMPT's revenue will grow by around 30% to 40% this year, driven by the continuous expansion of its advanced packaging, as well as a strong recovery in mainstream semiconductors and SMT solutions driven by AI server boards and power management ICs. Therefore, it has raised its earnings per share forecast for this year and next year by 35% and 21%, raised the target price from HK$130 to HK$175, and upgraded the rating to "hold". The bank believes that there are several catalysts in the coming quarters that could drive the stock price higher, including the release of pent-up HBM4 orders, which may be unlocked in the second half of this year after SK Hynix resolves the logic board challenge for its Rubin chip; at the same time, the company is in extensive discussions with all DRAM manufacturers on the certification cooperation for HBM4E TCB.