[ET Net News Agency, 17 January 2020] Citi Research lifted its target price for ASM
Pacific Technology (00522) to HK$156 from HK$125 and maintained its "buy" rating.
The research house noted that TSMC announced its 2020 capex budget of US$15bn-US$16bn.
Citi believes TSMC's 10% capex spend on back-end process reconfirms its positive thesis on
ASM. Intel is an important client of ASM.
Intel raised its 2019 capex by US$0.5bn to US$16bn and Citi expects similar levels of
capex in 2020. It believes Intel's increased capex to benefit ASM's growth momentum in
2020-21.
Citi also thinks China OSATs are buying more semi equipment as their clients (i.e.
Huawei/other China brands) are pushing for import substitution. ASM is a beneficiary of
this trend. It increased its 2H 2020 margin assumption to reflect the above, as a result
earnings increase by 5% in 2020. (KL)
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00522 ASMPT
Nominal 
96.700 -6.800 (-6.570%) Others
17/01/2020 16:43
{I-bank focus}Citi lifts ASM Pacific (00522) to HK$156
| Remark: | Real time quote last updated: 19/04/2024 12:23 |
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