HK Stock Market Move | ASMPT (00522) Falls Over 6% in Early Trading; SMT Business Valuation May Be Below Company Target; Citi Calls News Neutral to Slightly Positive

ASMPT (00522) fell over 6% in early trading. As of press time, it was down 5.75% at HK$111.5, with turnover of HK$198 million. On the news front, according to reports, IDG Capital has become the leading bidder for ASMPT's SMT business, and all parties declined to comment. Citi issued a research report stating that the report indicates the deal may be reached in the coming weeks, with the SMT business valued at over US$1 billion, potentially below ASMPT's target of US$1.5 billion. The bank views this news as neutral to slightly positive for ASMPT's share price. Citi also said that ASMPT's third-quarter results were broadly in line with expectations. Management expects fourth-quarter revenue of between US$670 million and US$730 million, implying mid-point year-on-year growth of about 38%, roughly 9% above market expectations, with the lower end also above market expectations. Citi reiterated its "Buy" rating on ASMPT with a target price of HK$250, bullish on advanced packaging demand being supported by order trends.