[ET Net News Agency, 2 March 2018] HSBC Global Research lifted its target price for ASM
Pacific Technology (00522) to HK$134 from HK$127, and reiterated its "buy" rating.
The research house cited management during the 4Q 2017 investor meeting speaking of
broad-based growth opportunities in IC/discrete, LED, 3D sensors, automotive/industrial,
and advanced packaging (TCB, fan-out, WLP, SiP, and laser dicing). This growth is also
coming from new sources including memory and beyond the traditional stronghold in China
(43% of 2017 revenues).
Management guided to a strong rebound in 1Q 2018 bookings (likely >20% q-o-q, based on
HSBC's estimate) driven by strength in IC/discrete and LED, but also better-than-expected
orders in SMT.
The company has bought back 4.1m shares (at ~HK$108/share) since mid-December 2017 and
will likely complete the rest of the HK$780m buyback authorization in 2018. This will not
completely offset the estimated 22m increase in share count from the CB, so HSBC suspects
the company may look to raise its authorization further. (KL)