ASE Technology Holding: Our positive thesis still valid; maintain Buy

研报英文原文证据摘录

ASE Technology Holding: Our positive thesis still valid; maintain Buy

Global Markets Research

ASE Technology Holding 3711.TW 3711 TT 30 July 2026

EQUITY: OSAT

RatingOur positive thesis still valid; maintain Buy Remains Buy

Target priceRevenue upside, steeper GPM uptrend and higher capex; Increased from TWD 800.00OSAT moving up in value chain confirmed TWD 730.00

Maintain Buy with a higher TP of TWD800, implying 58% upside Closing30 July 2026price TWD 505.00

ASE delivered several positive messages around its broad business segments, spanning

from LEAP (leading-edge advanced packaging) to non-LEAP businesses. The company has Implied upside +58.4%

raised its 2026E LEAP revenue guidance by another couple of hundred million dollars (vs.

guidance of USD3.5bn+ in the Aprearningscall), and raised the general segment revenue Market Cap (USD mn) 69,474.4

growth guidance from +13% y-y to +20% y-y, leading to 35% y-y growth in 2026E ATM ADT (USD mn) 501.0

revenue (largely in line with our estimates publishedinend-June). That said, we revise up

our 2026E EMS revenue forecast to reflect the higher-than-expected guidance (we model Relative performance chart

+25% q-q growth for 3Q26F vs. guidance for ~40% q-q growth), although the higher-than

expected revenue can partly be attributed to memory price inflation, and its pass-through

could be slightly margin-dilutive. However, management’s commentary on ATM GM was

encouraging. During its Aprearningscall, the company noted it was looking to “reach the

high-end of its structural margins (24-30%) by the end of the year,” but its profitability

improvement appears to have outpaced expectations, as ASE expects 28-29% ATM GM for

3Q26E and potentially more than 30% for 4Q26E, primarily due to higher loading, and a