[ET Net News Agency, 2 November 2020] Macquarie Research lowered its target price for
ASM Pacific Technology (00522) to HK$94.5 from HK$95 and maintained its "Outperform"
rating.
The research house said 3Q commenced a period of weak demand - reflecting macro
conditions - i.e., weak smartphone, auto, industrial and aerospace demand. ASM's 3Q showed
weak gross margin at 32.9%, weak operating margin at 8.3%, hence operating profit down 29%
below Consensus which flows down to net income -24% below Consensus.
Macquarie expects growth from 2H 2021, but a mixed outlook for the next three quarters.
It lowered its 2021 net income forecast by 14% and maintained 2020 and 2022. (KL)