Hong Kong's ASMPT Q3 revenue rises 49% on AI demand

Overview

• Hong Kong semiconductor equipment maker's Q3 revenue rose 49% yr/yr, driven by AI demand

• Adjusted EPS and revenue exceeded consensus, with record bookings in TCB, SMT, and Photonics

• Company guides Q4 revenue above market consensus, citing continued AI infrastructure investment

Outlook

• ASMPT expects Q4 2026 revenue between US$670 mln and US$730 mln

• Company sees Q4 revenue growth driven by double-digit SMT growth; SEMI revenue expected flat

• ASMPT expects Q4 bookings to remain elevated YoY but below Q3's record level

Result Drivers

• AI INFRASTRUCTURE DEMAND - Co said sustained investment in AI infrastructure drove demand across Advanced Packaging, SEMI Mainstream and SMT

• PHOTONICS MOMENTUM - Co said continued momentum in Photonics led to record bookings and revenue in Q3

• INCENTIVE PROVISIONS – Higher incentive provisions and volume lifted adjusted OPEX, partly offsetting operating-profit growth

Key Details

Analyst Coverage

• The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 16 "strong buy" or "buy", 3 "hold" and no "sell" or "strong sell"

• The average consensus recommendation for the semiconductor equipment & testing peer group is "buy"

• Wall Street's median 12-month price target for ASMPT Ltd is HK$206.00, about 70% above its October 27 closing price of HK$121.20

• The stock recently traded at 20 times the next 12-month earnings vs. a P/E of 50 three months ago

Reuters Recommended Reads

• Oct 26 - IDG leads race for ASMPT's SMT unit valued at over $1 billion, sources say

• Oct 27 - Netherlands' ASM International Q3 revenue jumps on strong growth in memory sales

• Oct 27 - ASM International expects Q4 sales above forecasts, to hit 2030 goal three years early

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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)