[ET Net News Agency, 6 December 2019] Nomura cited ASM Pacific Technology's (00522)
management, which attended Nomura Investment Forum 2019 in Tokyo, saying that they remain
positive on all businesses into 2020.
Management believes 5G infrastructure is still a multi-year growth driver. But, the
sales contribution from 5G smartphone should be stronger in 2020. SMT (Surface Mount
Technology) equipment demand will benefit from the smaller form factor of the component
inside the 5G smartphone, as the battery size needs to be bigger.
The units of packaged ICs will be more inside 5G smartphone and Radio Frequency (RF)
components demand is also growing. The company is confident that the US premium smartphone
OEM will drive the SMT equipment upgrade cycle in 2020.
Nomura maintained its "buy" rating on ASM, with a target price of HK$125. (KL)