[ET Net News Agency, 25 April 2013] Credit Suisse lowered its target price for ASM
Pacific (00522) to HK$72.5 from HK$93, and maintained its "neutral" call.
The research house noted that ASM returned to profitability, but its profit was low at
HK$8m in 1Q, or a 95% YoY decline, due to margin contraction. Its B:B ratio for 1Q was
1.12 with order backlog as at end-March increasing 12% QoQ, pointing to an improving 2Q.
Credit Suisse added that the back-end equipment industry B:B ratio recovered to 1.08 in
March, but the industry bookings did not improve much from the trough. Although there
should be sequential improvement in 2Q, there has not been a sign of a strong cyclical
upturn yet.
The house reduced its 2013-15 forecasts by 15-17%, in view of its weaker results. (KL)