ASMPT Announces 2020 First Quarter Results
Grasping Opportunities in Crises, Forging Ahead
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Hong Kong, 22nd April 2020 – The world’s No.1 semiconductor assembly and packaging solutions supplier ASM Pacific Technology Limited (“ASMPT” / the “Group”) (Stock code: 0522) today announced its quarterly results for the three months ended 31 March 2020. Despite a challenging quarter with the COVID-19 outbreak, ASMPT managed to register a very strong double-digit % year-on-year (“YoY”) and quarter-on-quarter (“QoQ”) growth in bookings. Bookings for this quarter was the 2nd highest first-quarter bookings after the record booking performance in Q1 2018.
ASMPT reported a revenue of HK$3.38 billion (equivalent to US$434.2 million) during Q1 this year (Q1 2019: HK$3.66 billion, equivalent to US$466.6 million). The Group’s consolidated profit after taxation for the period was HK$25.4 million (Q1 2019: HK$108.2 million). Basic earnings per share for the period amounted to HK$0.06 (Q1 2019: HK$0.27).
Mr. Lee Wai Kwong, Chief Executive Officer of ASMPT, said, “We started the year with very strong bookings in January. Although the momentum was disrupted in February due to the COVID- 19 outbreak in China, bookings in March returned to normal, with immaterial amount of order cancellation. Driven by factors including 5G infrastructure built up, localization of the China semiconductor supply chain, recovery of the Optoelectronic market and the Group’s strong position in Advanced Packaging, we achieved strong double-digit % YoY booking growth in Q1 this year, led by customers in China, Taiwan, and Korea.”
Since the outbreak of COVID-19, ASMPT has taken every effort to protect the safety and health of its employees which is the utmost priority. The Group has implemented prevention control procedures that have worked out well so far with minimal disruption to operations. Currently, close to 100% of the Group’s employees in its China manufacturing plants had returned back to work.
The other two primary production facilities in Malaysia and Singapore are also affected. Malaysia's government has imposed a Movement Control Order closing all factories from 18 March 2020 until 28 April 2020. ASMPT’s factory, as part of the essential supply chain, has been granted approval to run production with a reduced workforce. On 3 April 2020, the Singapore government also announced a set of tightened measures effective from 7 April 2020 until 4 May 2020, including suspending all non-essential workplace. The Group’s business is classified as a key economic sector and allowed to remain open but with certain restrictions. While it is inevitable that such restrictions would have an impact on production capacities and efficiencies, the Group is able to cushion some of these impacts because of its diversified manufacturing base.
For the Semiconductor Solutions (formerly Back-end Equipment) Segment, demand for traditional tools like Wire and Die Bonders, and tools for Advanced Packaging contributed to the strong booking performance for this quarter. China semiconductor supply chain localization effect, 5G infrastructure, and general lighting demand contributed to the increase in bookings for IC/ Discrete and Optoelectronics businesses.
Revenue from Advanced Packaging tools continued to be strong exceeding that of CIS this quarter. Collectively, both AP and CIS contributed close to half of Semiconductor Solutions Segment’s billing. Gross margin has increased by 202 bps YoY and 45 bps QoQ to 41.3%, mainly due to product mix and positive results from productivity drive in manufacturing activities.
For the SMT Solutions Segment, strong demand for 5G infrastructure and SiP packages contributed to the high booking similar to the level recorded in the first quarter of 2018. Billing of the SMT Solutions Segment amounted to US$188.3 million, representing a contraction of 15.1% YoY and 23.1% QoQ. Segment profit declined by 40.8% YoY and 54.6% QoQ.
During the period, the Materials Segment recorded bookings of US$88.9 million, which was a record high and this is also the fifth consecutive QoQ growth that the Materials Segment has registered. Traditionally serving as a leading indicator to the semiconductor market, this trend would have overwhelmingly suggested a recovery of the market, if not for the current uncertainty introduced by the COVID-19 outbreak. In this quarter, billing of the Materials Segment declined 22.3% QoQ but expanded slightly 1.3% YoY and gross margin improved 7 bps QoQ to 8.5%.
“Our manufacturing team in China demonstrated great resilience when our plants were reopened after the prolonged shutdown due to the COVID-19 outbreak. We are also grateful to our suppliers who had supported us. We are working towards recovering a big portion of lost capacity over the next few months through productivity improvement and working overtime.
Going forward, the pickup in demand from the Chinese manufacturers to localize their supply chains and the accelerated deployment of 5G infrastructure and the progress we are making on capturing new market opportunities such as Advanced Packaging, Silicon Photonics, Industrial Internet of Things, mini and micro-LED solutions, Power semiconductors and Industry 4.0 solutions underpin our confidence to deliver long term sustainable value to our shareholders.
Second quarter bookings tend to trend higher than the first quarter in the past; however, we are of the view that the booking for Q2 2020 would decline double-digit % QoQ due to the adverse impacts caused by the unprecedented COVID-19 pandemic. While the Group ended Q1 2020 with a high backlog, some orders would take more than one quarter to be fulfilled due to production lead time and revenue recognition policy. Considering the above, we anticipate revenue in Q2 2020 to be in the range of US$500 million to US$580 million. We also expect the Group’s gross margin to be in the range of 34.5% to 36.5% for Q2 2020.” Mr. Lee concluded.
ASM Pacific Technology Limited
As a global technology and market leader, ASMPT (HKEX stock code: 0522), develops and provides leading-edge solutions in surface mount technology, equipment, and materials for the semiconductor assembly and packaging industries. Its surface mount technology solutions are deployed in a wide range of end-user markets including electronics, mobile communications, automotive, industrial, and LED. Our continuous investment in research and development helps to provide our customers with innovative and cost-efficient solutions and systems that enable them to achieve higher productivity, greater reliability, and enhanced quality.
Listed on the Hong Kong Stock Exchange since 1989, ASMPT is currently one of the constituent stocks on the Hang Seng Composite MidCap Index under the Hang Seng Composite Size Indexes, the Hang Seng Composite Information Technology Industry Index under Hang Seng Composite Industry Indexes and the Hang Seng Hong Kong 35 Index. To learn more about ASMPT, please visit our website at www.asmpacific.com.
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ASM PACIFIC TECHNOLOGY LIMITED
CONDENSED CONSOLIDATED STATEMENT OF PROFIT OR LOSS
CONDENSED CONSOLIDATED STATEMENT OF PROFIT OR LOSS AND OTHER COMPREHENSIVE INCOME