ASM Pacific Technology Announces Record 2021 Annual Results
Record FY2021 EPS HK$7.72 Beats Market Consensus
Strategic Initiatives Underpin Long Term Performance
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Group Performance at a Glance
Q4 2021 Group Financial Highlights
Full Year 2021 Group Financial Highlights
Q1 2022 Revenue Guidance
1Q4 2020 and FY 2020 results are on continuing operations basis. The Group’s former Materials Segment results are deconsolidated and equity accounted for since 29 December 2020.
Full Results Announcement and Investor Presentation available from https://www.asmpacific.com/en/financial-results
(Hong Kong, 23 February 2022) — ASM Pacific Technology Limited (“ASMPT” / the “Group”) (Stock code: 0522) announced record annual results for the year ended 31 December 2021 amidst a dynamic and challenging macroeconomic environment, laying a strong foundation for sustained growth.
Group FY 2021 Highlights
“Key macroeconomic tailwinds helped drive the Group’s performance in 2021,” explained Mr. Robin Ng, Group Chief Executive Officer. “These include previous under-investment in semiconductor capital equipment that has come up against dynamic geopolitical and supply chain issues heightening the need for semiconductor self-sufficiency. All these are in turn being fuelled by broad and sustained term digital transformation trends across many end application areas.”
In this dynamic environment, the Group deftly leveraged external manufacturing capacity to respond to quickly-changing market conditions, shifting where feasible to just-in-case inventory management to further strengthen supply chain resilience. It also collaborated proactively with suppliers to address supply chain and logistical challenges. Some of the noteworthy developments for the year were:
An Excellent First Year for AAMI: The AAMI strategic joint venture, launched in end 2020 to accelerate the Group’s former Materials (lead frame) business, recorded a strong first full-year performance that is on track to meet certain mutually agreed profitability targets from 2021 to 2023 set out in the shareholders’ agreement. New capacity investments are coming on stream in 2022 to fuel future growth.
Thermo Compression Bonding (TCB) Leadership: The Group’s chip-to-substrate TCB tools are dominant globally. They are the tools-of-record at leading tier-one customers and support the advanced technology roadmaps of industry partners. It received recent orders for a next-generation Chip-to-Wafer TCB platform of nearly US$100 million over the next two years, and has scaled up additional sites and capacity to deliver these advanced tools.
Advanced Packaging (AP) growth: AP solutions across both the Group’s SEMI and SMT segments registered full year 2021 revenue contribution of approximately US$590 million, representing 35% growth YoY with book-to-bill ratio of 1.15, higher than for 2020.
Automotive solutions growth: Supported by strengthening trends in automotive electrification, automotive solutions contributed approximately US$430 million to Group 2021 revenue, more than double 2020’s. The Group also added a significant number of new customers in 2021.
Group Highlights - Full Year 20211
The Group delivered record full-year revenue of HK$21.95 billion (US$2.82 billion), with the Automotive, Consumer and Industrial markets each noteworthy for more than doubling their YoY revenue contribution.
Record bookings from both SEMI and SMT segments helped drive record Group bookings to the tune of HK$26.12 billion (US$3.36 billion), supporting a substantial backlog of HK$10.06 billion (US$1.29 billion) (as of 31 December 2021) and book-to-bill ratio of 1.19.
Group net profit rose to a record HK$3.18 billion, a 398.8% YoY increase despite a constrained global supply chain environment. This was supported by high operating leverage and margin effects from the Group’s strategic initiatives.
Finally, with disciplined capital management, the Group held cash and bank deposits of HK$4.88 billion (as of 31 December 2021).
In line with this great performance, the Board of Directors proposed a final dividend of HK$2.60 (2020: final dividend of HK$2.00) per share. Aside from the interim dividend of HK$1.30 per share paid in August 2021, this represents a dividend-per-share increase of 44.4% compared with 2020. The Group has continued to consistently pay dividends every year since listing in 1989.
Group Highlights - Q4 20211
Strong Group revenue of HK$6.20 billion (US$796.3 million), up 43.9% YoY, exceeded the top end of previous revenue guidance, while Q4 bookings of HK$5.25 billion (US$674.2 million) were a strong 25.0% YoY improvement.
Gross profit margin was 41.3%, an increase of 1,051 bps YoY and 76 bps QoQ, due to the relatively strong gross margin performance of both SEMI and SMT segments. Net profit (including share of results from AAMI) was a Q4 record at HK$910.8 million, up 693.8% YoY.
The Group expects the challenging supply chain environment to persist and impact the broader market in 2022. While this dynamic situation remains a concern, the Group is anchored by a robust order backlog and expects revenue for Q1 2022 to be between US$640 million to US$690 million, a record first quarter at the mid-point of guidance.
“We have had a stellar year thanks in no small part to the entire ASMPT team’s perseverance and strong customer-centric ethos,” said Mr. Robin Ng. “The growth and cost optimisation strategic initiatives we have introduced will continue to unfold in distinct phases over the next few years to enable consistent, structural revenue growth and margins expansion. This will in turn help us to create a bright and sustainable future for our customers, employees, investors, partners, and society.”
1results from continuing operations
ASMPT (HKEX stock code: 0522) is a leading global supplier of hardware and software solutions for the manufacture of semiconductors and electronics. Headquartered in Singapore, ASMPT’s offerings encompass the semiconductor assembly & packaging, and SMT (surface mount technology) industries, ranging from wafer deposition, to the various solutions that organise, assemble and package delicate electronic components into a vast range of end-user devices, which include electronics, mobile communications, computing, automotive, industrial and LED (displays). ASMPT partners with customers very closely, with continuous investment in R&D helping to provide cost-effective, industry-shaping solutions that achieve higher productivity, greater reliability and enhanced quality.
ASMPT is one of the constituent stocks of the Hang Seng TECH Index, 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 us at www.asmpacific.com.
All statements included herein, other than statements of historical facts, are or may be forward-looking statements. These forward-looking statements reflect ASMPT’s current expectations, beliefs, hopes, intentions or strategies regarding the future and assumptions in light of currently available information. Such forward-looking statements are not guarantees of future performance or events and involve known or unknown risks and uncertainties. Accordingly, actual results may differ materially from information contained in the forward-looking statements as a result of a number of factors. Readers should not place undue reliance on such forward-looking statements, and ASMPT does not undertake any obligation to update publicly or revise any forward-looking statements. No statement herein is intended to be or may be construed as a profit forecast.
For media enquiries:
Lim Ee Guan
Director, Corporate Communications
Tel: +65 6450 1445
On behalf of ASMPT:
Strategic Financial Relations Limited
Mandy Go / Vivienne Leung / Jill Cheung
Tel: 2864 4812 / 2864 4862 / 2864 4870
Fax: 2527 1196
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