Citi: ASMPT (00522) Q3 orders hit a record high, guidance far exceeds expectations.

Citi issued a research report stating that ASMPT's (00522) third-quarter orders hit a record high and its guidance far exceeded expectations. The bank reiterated its "Buy" rating with a target price of HK$250. ASMPT's third-quarter results were broadly in line with expectations. Driven by advanced packaging, SEMI mainstream business and SMT, revenue was HK$5.247 billion, up 49% year-on-year and 6% quarter-on-quarter, in line with the original guidance of US$630 million to US$690 million. Net profit was HK$533 million, below the market expectation of HK$578 million, but still in line with Citi's estimate. Citi noted that third-quarter orders were HK$8.8 billion, a record high, of which SEMI orders rose 172% year-on-year and 32% quarter-on-quarter, while SMT orders also hit a new record, up 122% year-on-year and 19% quarter-on-quarter. Management expects fourth-quarter revenue of between US$670 million and US$730 million, implying mid-point year-on-year growth of about 38%, about 9% above market expectations, with the lower end also above market expectations. Citi is bullish on advanced packaging demand, supported by order trends.