Citi Raises End-2026 HSI Target to 30,000 and Includes Zijin/Lens in Top H-Shares Selections

The analyst rating for ASMPT (00522.HK) is maintained at "Buy" despite a miss in 3Q25 results due to several factors, including one-off factory shutdown costs, an unfavorable product mix, and higher operating expenses. The management's optimism for 2026 and 2027, driven by the company's technological leadership in advanced packaging solutions and a recovery in demand from AI and China's NEV sector, supports this rating. Although the broker lowered its earnings forecasts for 2025-2027 to reflect a slower-than-expected recovery in gross profit margins, the outlook for SMT and mainstream semiconductor businesses remains positive, prompting the broker to raise the target price from $80 to $98.

Morgan Stanley rated ASMPT (00522.HK) as Overweight due to several long-term growth drivers, including the expansion of CoWoS-L output, the development of high-bandwidth memory in China, and progress in hybrid bonding. Despite the expectation of a loss in 3Q25 due to one-off restructuring costs, the broker noted a recovery in mainstream semiconductor demand and continued growth in the advanced packaging market. Additionally, they estimated that ASMPT's book-to-bill ratio would remain above 1 in 3Q25, which supports their positive outlook. Consequently, they raised the target price from $80 to $100 and adjusted their earnings forecasts accordingly.

The analyst rating for ASMPT (00522.HK) was lifted to a Buy with an increased target price from HKD90 to HKD125 due to the company's qualification by a leading wafer manufacturer and its potential to become a second supplier of chip on wafer thermal compression bonding (TCB). Nomura's research report suggests that ASMPT has overcome previous obstacles and is likely to win next-generation oW TCB orders soon, indicating a positive outlook for future orders and potential revaluation.