- Revenue: USD 1.7 billion for 2024, a decline of 10% year-on-year.
- Group Bookings: USD 1.6 billion at the end of 2024, an increase of 4% year-on-year.
- Backlog: USD 779 million, a decline of 8.5% year-on-year.
- Gross Margin: Increased by 70 basis points to 40% year-on-year.
- Operating Profit: HKD 558.3 million, a decline of 49.4% year-on-year.
- Adjusted Net Profit: HKD 426 million, a decline of 42.8% year-on-year.
- Adjusted Earnings Per Share: HKD 1.04, a decrease of 42.9% year-on-year.
- Total Dividend Payment: HKD 0.67 per share for 2024.
- Cash and Bank Deposits: HKD 5.1 billion at the end of 2024.
- Net Cash: HKD 2.4 billion.
- Q4 2024 Revenue: USD 437.6 million, flat year-on-year.
- Q4 2024 Bookings: USD 419.4 million, up 19.2% year-on-year.
- Q4 2024 Gross Margin: 37.2%, a decline of 508 basis points year-on-year.
- Q4 2024 Adjusted Net Profit: HKD 82 million, an increase of 7.2% year-on-year.
- AP Revenue Contribution: Increased from 22% in 2023 to nearly 30% in 2024.
- SMT Revenue Decline: 22.9% year-on-year.
- Semi Revenue Growth: 6.9% year-on-year, contributing about 51% of group revenue.
- AP Business Growth: Estimated CAGR of 18%, reaching USD 4 billion by 2029.
- Automotive Revenue Contribution: Largest proportion at about 20% of gross revenue in 2024.
- China Revenue Share: Increased from 31% to 38% of group revenue.
Release Date: February 26, 2025
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
- ASMPT Ltd (ASMVF, Financial) reported a strong performance in its advanced packaging (AP) solutions, with a 23% year-on-year revenue increase, driven by demand for AI and high-performance computing semiconductors.
- The company achieved significant milestones in thermal compression bonding (TCB) solutions, securing substantial orders from major high bandwidth memory (HBM) players.
- ASMPT Ltd (ASMVF) is well-positioned to capitalize on the growing market for AP solutions, with an estimated total addressable market growth at a CAGR of 18% from 2024 to 2029.
- The company maintained a strong balance sheet with cash and bank deposits of HKD5.1 billion at the end of 2024, up from HKD4.8 billion in 2023.
- ASMPT Ltd (ASMVF) announced a total dividend payment of HKD0.67 per share for 2024, reflecting its commitment to enhancing shareholder value.
Negative Points
- ASMPT Ltd (ASMVF) experienced a 10% year-on-year decline in total revenue for 2024, primarily due to a 22.9% drop in SMT segment revenue.
- The company's operating profit decreased by 49.4% year-on-year, impacted by lower revenue and flat operating expenses.
- Gross margin for the group declined by 508 basis points year-on-year in Q4 2024, with both semi and SMT segments contributing to the decrease.
- The SMT segment faced ongoing market softness, with a 21.3% year-on-year revenue decline in Q4 2024.
- ASMPT Ltd (ASMVF) provided a cautious outlook for Q1 2025, expecting revenue to be flat year-on-year and down 9% quarter-on-quarter at the midpoint.
Q & A Highlights
Q: Could you elaborate on the significant step-up in TAM from 2026 to 2027, particularly regarding TCB adoption in new markets?
A: Yifan Xu, CFO, explained that the TAM estimate was derived from industry research and internal estimates, focusing on co-wafer numbers and interconnect requirements. The increase is driven by TCB adoption in HBM memory markets and chip-to-wafer applications for logic. CEO Cher Tat Ng added that the growth is mainly from HBM rather than logic, as the industry moves towards higher HBM stacks.
Q: Does the TCB projection include flip chip MR solutions for chip-on-substrate applications?
A: Cher Tat Ng, CEO, clarified that the TCB projection does not include flip chip MR solutions, which are considered separate from TCB tools.
Q: What is the progress with your first HBM customer, and what is your confidence in repeat orders?
A: Cher Tat Ng, CEO, stated that the progress is good, with most tools installed and undergoing qualification. The company is confident in its technology and expects repeat orders, despite competitors suggesting otherwise.
Q: Can you provide more details on the gross margin trends for the coming quarters, especially for the semiconductor business?
A: Yifan Xu, CFO, noted that Q4 gross margins were impacted by product mix and a high base from Q3. The margins for advanced packaging, particularly TCB, are expected to be accretive to the semi and group margins.
Q: How do you see the dynamics between HBM and logic markets from 2025 to 2027?
A: Cher Tat Ng, CEO, indicated that the main driver for TCB growth will be the increasing adoption for HBM applications as the industry moves to higher stacks. The transition from MR to TCB for wafer applications is also expected to contribute to growth.
Q: What is the market share target for TCB, and how do you justify the 35% to 40% target?
A: Cher Tat Ng, CEO, stated that the target is based on their leading position in TCB for chip-to-substrate applications and recent breakthroughs in the HBM market. The company has secured orders from multiple global HBM players, reinforcing their confidence in achieving this market share.
Q: Are you on track to ship the second-generation hybrid bonding tools by mid-2025?
A: Cher Tat Ng, CEO, confirmed that they are on track to ship the second-generation hybrid bonding tools, which will achieve below 100-nanometer accuracy, by mid-2025 to HBM customers.
Q: Do you expect a recovery in traditional packaging markets in the second half of 2025?
A: Cher Tat Ng, CEO, mentioned that while visibility is limited, there are signs of utilization rates creeping up. Industry experts suggest a recovery in the second half of 2025, and the company is preparing to capitalize on it.
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
