The Zhitong Finance App learned that ASMPT (00522) rose more than 4% in early trading. As of press release, it rose 4.16% to HK$100.2, with a turnover of HK$171 million.

According to the news, ASMPT management has made it clear that it will keep the surface mount technology (SMT) business and will not advance the split plan previously discussed. Management expects the global SMT potential market size to grow at a compound annual rate of over 20% from 2024 to 2027. The company's SMT order market share has increased from 24% in 2025 to 31% at present, and the related order amount has increased from US$700 million to US$1.4 billion. AI applications and APs currently account for 50% and 25% of SMT orders, respectively.

Management anticipates that SMT business revenue may reach approximately US$1.6 billion by 2027, with a gross margin of 40% and a segmented profit margin of 20%. Citigroup estimates that this means the net profit of the SMT business is about US$230 million. According to the updated SMT profit calculation, the transaction valuation previously reported by Reuters implied that the price-earnings ratio in 2027 was only 4 to 5 times. Citi believes that this valuation underestimates the value of the SMT business.

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