ASMPT: Q2 Results and Orders Both Beat Expectations, TCB and Silicon Photonics Continue High Prosperity

English summary

Q2 results and orders both beat expectations. Revenue was USD 630 million (+52.1% YoY, +24.4% QoQ), exceeding the upper end of guidance; new orders were USD 904 million (+97.6% YoY, +24.8% QoQ), with both SEMI and SMT better than expected. Adjusted gross margin rose to 42.5%, adjusted net profit from continuing operations was HKD 638 million (+253.9% YoY, +90.2% QoQ), further releasing earnings elasticity. Q3 revenue guidance is USD 630-690 million, with mid-point +46.3% YoY and +4.8% QoQ, higher than market expectations; orders expected to grow high single digits QoQ, mainly driven by TCB and silicon photonics. Order growth slowing from Q2 is mainly due to high base, with SMT orders possibly declining QoQ; meanwhile, some material lead times are lengthening, and advanced packaging equipment manufacturing cycles are longer, extending the order-to-revenue cycle to about 6-9 months, affecting revenue recognition pace, but demand remains high. TCB continues to ramp up.…