Largest Daily Loss in Over a Decade

  • ASMPT shares plunge after missing market expectations on quarterly results and guidance
  • 19% daily loss – largest in over 15 years
  • Net profit halves to HK$17.3 million
  • Revenue drops from HK$3.90 billion to HK$3.34 billion
  • Slower-than-expected recovery in semiconductor market due to tepid consumer spending and softening industrial and automotive markets
  • Orders for main semiconductor solutions lacking volumes indicating broader recovery
  • Revenue guidance for Q3: US$370 million – US$430 million, down nearly 10% from last year’s midpoint
  • Interim dividend slashed by 43% to HK$0.35
  • Citi analyst sees potential short-term selloff as demand recovery signs emerge for outsourced semiconductor assembly and test companies

ASMPT, a Singapore-based semiconductor and electronics equipment maker, experienced a significant drop in its shares after missing market expectations for quarterly results and guidance. The company’s net profit halved to HK$17.3 million, with revenue dropping from HK$3.90 billion to HK$3.34 billion. Despite an AI-driven surge in demand for advanced chips, the broader semiconductor industry faces a slower recovery due to tepid consumer spending and softening industrial and automotive markets. The company’s orders for main semiconductor solutions lack volumes indicating a broader recovery. ASMPT guided revenue for Q3 at US$370 million – US$430 million, down nearly 10% from last year’s midpoint. The interim dividend was slashed by 43% to HK$0.35. However, the selloff could be a short-term hiccup as demand recovery signs emerge for outsourced semiconductor assembly and test companies.

Factuality Level: 8
Factuality Justification: The article provides accurate information about ASMPT’s financial performance and market reaction to the news, citing specific numbers and quotes from the company and an analyst. It also offers some context on the broader semiconductor industry. However, it could be improved by providing more details on the AI chip demand surge and the inventory glut mentioned earlier in the article.
Noise Level: 3
Noise Justification: The article provides relevant information about ASMPT’s financial performance and market reaction to the news, but it lacks in-depth analysis or exploration of long-term trends or consequences of decisions on those who bear the risks. It also does not offer much actionable insights for readers.
Public Companies: ASMPT (not provided)
Key People: Kevin Chen (analyst at Citi)

Financial Relevance: Yes
Financial Markets Impacted: ASMPT shares in Hong Kong
Financial Rating Justification: The article discusses the financial performance of ASMPT, a semiconductor and electronics equipment maker, and its impact on the company’s stock price. It also mentions the broader semiconductor industry and how it affects financial markets.
Presence Of Extreme Event: No
Nature Of Extreme Event: No
Impact Rating Of The Extreme Event: No
Extreme Rating Justification: There is no extreme event mentioned in the article.

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