ASMPT Limited

ASMPT reported 1H 2026 revenue of USD 1.14 billion, up 18.9% half-on-half and 42.5% year-on-year. 1H bookings were USD 1.63 billion, up 68.1% half-on-half and 85.1% year-on-year, with book-to-bill at 1.43; 1H adjusted gross margin was 41.2%, up 441 bps half-on-half and 86 bps year-on-year. In Q2, revenue was USD 630.0 million, up 24.4% Q-on-Q and 52.1% year-on-year; bookings were USD 903.6 million, up 24.8% Q-on-Q and 97.6% year-on-year; adjusted gross margin was 42.5%; adjusted operating profit was HKD 847.0 million; adjusted net profit was HKD 637.5 million; and adjusted EPS was HKD 1.53. For Q3 2026, the company guided revenue to USD 630 million to USD 690 million, implying midpoint growth of 4.8% Q-on-Q and 46.3% year-on-year, and said Q3 bookings should grow by a high single-digit percentage sequentially, mainly from TCB and photonics.

The CEO framed the quarter as evidence that ASMPT’s transformation toward back-end packaging is working, with AI and a recovery in mainstream business both contributing. He highlighted record SMT bookings, strong photonics momentum, and continued strength in advanced packaging, especially TCB and photonics, while saying the company is well positioned across the AI value chain and in traditional applications. He also noted this was his final quarterly call as he steps down in August, and he expressed confidence in the incoming CEO continuing the strategy.

The CFO detailed broad-based financial improvement: 1H revenue of USD 1.14 billion, bookings of USD 1.63 billion, book-to-bill of 1.43, and adjusted gross margin of 41.2%; in Q2, adjusted gross margin was 42.5%, adjusted operating profit was HKD 847.0 million, adjusted net profit was HKD 637.5 million, and adjusted EPS was HKD 1.53. She said Q2 results beat the upper end of guidance and that both SEMI and SMT drove the upside. On margins, she said Q3 gross margin should stay relatively stable, with SEMI supported by favorable mix and SMT remaining in the mid-30s at current volume, implying group margin could stay above 40%; she also said the company maintains a dividend policy of about 50% of profits and recommended an interim dividend of HKD 0.97 per share.

Analysts focused on the timing of memory TCB demand, C2S delivery timing, the CPO transition, hybrid bonding adoption, China growth, and whether supply-chain lead times were stretching revenue recognition. Management said HBM-related TCB timing is being pushed by customers taking longer to meet HBM4 specifications, but noted repeat orders, in-stock tools being deployed into HBM4 high-volume manufacturing, and a JEP for advanced memory packaging including HBM5. On photonics, management said most current demand is still from pluggable optical transceivers, while CPO is small today and likely to inflect around 2027-2028, with ASMPT aiming to win share across multiple high-precision assembly steps. The company also said longer lead times and the shift toward advanced packaging are extending booking-to-billing conversion to roughly 6 to 9 months.