UBS Global Research raised its target price for ASM Pacific Technology (00522) to HK$90 from HK$75 and maintained its "neutral" rating.
The research house said ASM's net profit of HK$365m was in line with expectations. But management declined to give guidance on 3Q0 bookings, given macro uncertainty.
UBS has been expecting a weaker 2H given that surface-mount technology (SMT) demand for auto/industrial typically trails the semi cycle, and it does not expect Apple to upgrade SMT. UBS said the outlook for 2021 might be more favourable for ASM, given likely stronger semis growth, more advanced packaging, and SMT inflecting. It lowered its 2020/21 EPS estimates 3%/2% to HK$3.67/5.86.