Key Takeaways:
ASMPT reported Q2 revenue of US$630 million, up 52.1% year-on-year and above guidance, as AI-driven advanced packaging demand accelerated.
"We delivered a strong first half 2026 performance, with Q2 revenue and EPS above consensus," Group CEO Robin Ng said.
H1 revenue reached US$1.14 billion, up 42.5% year-on-year, while bookings climbed 85.1% to US$1.63 billion, lifting the book-to-bill ratio to 1.43, the highest since H1 2021. Adjusted net profit jumped 230.5% to HK$972.7 million, with adjusted EPS of HKD 1.94 supporting an interim dividend of HKD 0.97 per share.
The board guided Q3 revenue of US$630-690 million, implying 46.3% year-on-year growth at the midpoint, and expects bookings to rise at a high-single-digit pace. The AI upcycle in advanced packaging and photonics is the main growth engine, though longer material lead times and a CEO transition on 11 August add execution risk.
Advanced packaging, contributing about 30% of group revenue, delivered record half-year revenue of US$339 million, up 17% year-on-year. The SEMI segment posted Q2 revenue of US$369.1 million, up 56.1% year-on-year, with bookings of US$428.1 million, the highest since early 2022. SMT revenue rose 46.9% to US$260.9 million, supported by record bookings of US$475.4 million.
Photonics revenue nearly tripled year-on-year to about US$75 million in H1, driven by customer ramps of 800G optical transceivers. In July, ASMPT received bulk orders for more than 50 chip-to-substrate TCB tools from outsourced assembly and test customers, reinforcing its lead in AI packaging. The company competes with Besi and KLA in the advanced packaging equipment market.
China remained the largest market at about 42% of H1 revenue, while the top five customers contributed only about 19%, indicating low concentration risk. Adjusted gross margin expanded to 42.5% in Q2, up 302 basis points sequentially, as SMT and SEMI margins improved.
Management flagged supply-chain tightness that has extended order-to-billing conversion to six to nine months, and timing uncertainty around memory TCB shipments as customers refine HBM4 specifications. Hybrid bonding adoption is expected to inflect around 2029 to 2031, later than previously anticipated.
Huachuang Securities issued a Buy rating on ASMPT on 3 August, citing the earnings beat, a book-to-bill of 1.43 and a 50 percent interim payout ratio. The results show AI demand in advanced packaging, SMT and photonics is running ahead of revenue recognition. Investors will watch the Q3 call for updated segment margins and TCB order conversion.
This article is for informational purposes only and does not constitute investment advice.
