Glonghui, March 13 | Goldman Sachs published a research report. It is expected that generative artificial intelligence (GenAI) will drive the development of ASMPT's advanced packaging semiconductor production equipment (SPE) business. Considering strong market demand and positive gross margin prospects, it is conducive to the company's growth throughout the semiconductor cycle. According to the report, ASMPT SPE business revenue recorded positive growth from 2020 to 2021 and declined from 2022 to 2023. It is expected that with the expansion of production capacity at mature process nodes in China, the semiconductor cycle will steadily improve, and SPE business revenue will once again record positive growth from 2024 to 2026. ASMPT orders bottomed out in the first quarter of this year. Goldman Sachs sees this as an early sign of recovery, pointing out that although new orders in 2023 are mainly driven by the SMT solution business, it is believed that as automotive SMT growth returns to normalization and AI applications drive the growth of advanced packaging, the company's product structure will shift back to semiconductors this year. Goldman Sachs raised its ASMPT target price by 13.6% to HK$124.01, reflecting steady profit growth prospects and maintaining a “buy” rating.