ASMPT (00522.HK): Concludes SMT Strategic Review, Retains Segment

NewTimeSpace News: ASMPT Limited (stock code: 00522) announced that, following a comprehensive review and evaluation of the strategic options for its SMT Solutions Segment as set out in its announcement dated 21 January 2026, covering divestiture, joint venture, spin-off, public listing and retention within the Group, the Board has concluded that it is in the best interests of the Company and its shareholders as a whole to retain the Segment, and the assessment of strategic options has been concluded. In reaching its decision, the Board considered favourable long-term industry trends, particularly the expansion of AI infrastructure investment and the increasingly demanding electronics manufacturing requirements associated with it, as well as the Segment's leading market position, technological capabilities, extensive customer relationships and innovative product portfolio.

The Segment's business profile is evolving beyond a cyclical recovery. Its bookings market share rose from around 24% in 2025 to approximately 31% in 2026 year-to-date, with bookings more than doubling from around US$0.7 billion to above US$1.4 billion over the same period. AI-related applications grew from 12% of bookings in 2024 year-to-date to more than 50% in 2026 year-to-date, while Advanced Packaging bookings increased to approximately US$340 million in 2026 year-to-date, about 25% of the Segment's total bookings. The Group estimates the SMT addressable market will expand at a compound annual growth rate of more than 20% from 2024 to 2027.

Revenue for the Segment is projected to double from the 2025 level to approximately US$1.6 billion by 2027, with gross margin rising from the low 30% range to about 40% and segment profit margin reaching 20% by 2027. Group CEO Bassel Haddad said AI-driven demand is positioning the business for a step change in its financial profile, and that with clarity on SMT's future within ASMPT the Group is focused on disciplined execution to realise this potential. The Company will continue to support the Segment's development and growth.