On July 25th, Glonhui published a research report stating that due to the weakness of SMT business and capital expenditure increase, ASMPT's second quarter performance fell short of expectations, with revenue reaching 3.34 billion Hong Kong dollars, a year-on-year decline of 14% and a growth of 6% on a quarterly basis, which is in line with expectations, but slightly higher than market expectations. The revenue of semiconductor solutions (SEMI) and SMT business in the period increased by 0.4% and declined by 25.2% respectively. Due to the drag of SMT business, the gross margin in the period fell by 1.8 percentage points quarter-on-quarter to 40%, of which the gross margin improvement of SEMI business offset some of the impact. Based on the continued weakness of the SMT market, ASMPT's outlook for the third quarter is lower than market expectations, with revenue guidance ranging from 0.37 billion to 0.43 billion US dollars, indicating a year-on-year decline of 10%, compared with the market's general expectations of 12% growth. The bank believes that the AP business is still ASMPT's main growth driver. At the same time, the progress in acquiring customers for TCB and HB welding tools is good, and it is believed that it can promote future growth. We maintain a positive outlook on the long-term development prospects and reiterate our "outperform the market" rating. The target price has been slightly reduced from HKD 110 to HKD 109, corresponding to a forecasted market-to-book ratio of 2.7 in 2024.