HK Stock Market Move | ASMPT (00522) rose nearly 7% in the afternoon. Institutions are optimistic about the long-term boost to performance and valuation from advanced packaging business.

ASMPT (00522) rose nearly 7% in the afternoon, up 4.43% at the time of publication to HKD 176.7 with a trading volume of HKD 394 million. In terms of news, ASMPT previously announced that it would sell all of the equity of its US subsidiary NEXX to US-based Applied Materials for USD 120 million in cash, aiming to integrate its business layout and focus on backend packaging operations. Analysts believe that the divestment of NEXX will reduce compliance and geopolitical sanction risks for the company, and create an opportunity for Chinese capital to enter ASMPT's global platform. Huatai pointed out that ASMPT's first quarter orders were impressive, with AI demand continuously spreading from advanced packaging to mainstream backend, and opportunities for growth in silicon photonics and CoPoS. EB SECURITIES also indicated that with the smooth progress of TCB and HB equipment, the start of shipments for HBM4 and 16-layer/20-layer HBM will further strengthen TCB demand prospects. The company actively expanded its customer base in storage and logic advanced packaging, bullish on the long-term boost to performance and valuation of advanced packaging operations.