ASM Pacific 522

[winston]

<Research>Citi: ASMPT (00522.HK) Plant Closure Provides GPM Upside for 2026; TP Elevated to $85

ASMPT (00522.HK) announced the closure of an older mainstream semiconductor equipment plant in mainland China, as part of the Company's ongoing efforts to optimize its global supply chain by ceasing non-core production, Citi Research said.

Management expected no impact on product delivery, and remained committed to the China market.

The one-off restructuring cost of RMB360 million might reduce the gross profit margin of the semiconductor business in 3Q25/ 4Q25, but a more streamlined cost base will provide margin upside for 2026, the broker noted.

Citi Research anticipated 3Q25 to be a short-term bottom, followed by strong 2026 earnings recovery.

Therefore, the broker reiterated rating at Buy on ASMPT, and elevated its target price from $75 to $85.

Source: AASTOCKS Financial News

http://www.aastocks.com/en/stocks/news/ ... -news/AAFN