Citi is confident in ASMPT (00522) reaching a turning point in growth next year, and TCB will experience a turning point with sales expected to double.
According to the Finance and Economics APP, Citi's research report states that they are confident in ASMPT (00522) reaching a turning point in growth next year, and TCB will experience a turning point with sales expected to double. The newly acquired TCB and the potential privatization bid may become positive stock price catalysts, maintaining a "buy" rating with the target price lowered from HK$110 to HK$105.
The report mentions that ASMPT's revenue and gross margin in the third quarter exceeded expectations, but profits were lower than expected due to exchange rate losses. Advanced packaging continues to drive growth, despite lingering weak demand. Management believes that mainstream semiconductor solutions (SEMI) are beginning to recover, while surface mount technology (SMT) is also starting to rebound. Due to normal seasonal factors, the fourth quarter guidance indicates a seasonal decline in revenue.
