DB:AY7A

Stock Analysis Report

ASM Pacific Technology

Executive Summary

ASM Pacific Technology Limited, an investment holding company, engages in the design, manufacture, and marketing of machines, tools, and materials used in the semiconductor and electronics assembly industries worldwide.


Snowflake Analysis

Flawless balance sheet with reasonable growth potential.


Similar Companies

Share Price & News

How has ASM Pacific Technology's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: AY7A has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

-12.9%

AY7A

-4.1%

DE Semiconductor

-0.2%

DE Market


1 Year Return

22.3%

AY7A

15.5%

DE Semiconductor

13.7%

DE Market

Return vs Industry: AY7A exceeded the German Semiconductor industry which returned 16.2% over the past year.

Return vs Market: AY7A exceeded the German Market which returned 14.4% over the past year.


Shareholder returns

AY7AIndustryMarket
7 Day-12.9%-4.1%-0.2%
30 Day-12.2%2.1%0.3%
90 Day-0.9%12.1%3.7%
1 Year26.4%22.3%18.5%15.5%17.2%13.7%
3 Year1.5%-6.4%30.2%25.9%15.4%5.3%
5 Year49.3%30.9%95.0%85.4%21.3%4.7%

Price Volatility Vs. Market

How volatile is ASM Pacific Technology's share price compared to the market and industry in the last 5 years?


Simply Wall St News

No news available

Valuation

Is ASM Pacific Technology undervalued compared to its fair value and its price relative to the market?

65.17x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: AY7A (€11.5) is trading above our estimate of fair value (€8.45)

Significantly Below Fair Value: AY7A is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: AY7A is poor value based on its PE Ratio (65.2x) compared to the Semiconductor industry average (27.8x).

PE vs Market: AY7A is poor value based on its PE Ratio (65.2x) compared to the German market (20.7x).


Price to Earnings Growth Ratio

PEG Ratio: AY7A is poor value based on its PEG Ratio (1.2x)


Price to Book Ratio

PB vs Industry: AY7A is overvalued based on its PB Ratio (3.4x) compared to the DE Semiconductor industry average (2.4x).


Next Steps

Future Growth

How is ASM Pacific Technology forecast to perform in the next 1 to 3 years based on estimates from 17 analysts?

55.4%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: AY7A's forecast earnings growth (55.4% per year) is above the savings rate (-0.4%).

Earnings vs Market: AY7A's earnings (55.4% per year) are forecast to grow faster than the German market (13.3% per year).

High Growth Earnings: earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: AY7A's revenue (13% per year) is forecast to grow faster than the German market (5% per year).

High Growth Revenue: AY7A's revenue (13% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: AY7A's Return on Equity is forecast to be low in 3 years time (18.2%).


Next Steps

Past Performance

How has ASM Pacific Technology performed over the past 5 years?

7.4%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: AY7A has high quality earnings.

Growing Profit Margin: AY7A's current net profit margins (3.8%) are lower than last year (13%).


Past Earnings Growth Analysis

Earnings Trend: AY7A's earnings have grown by 7.4% per year over the past 5 years.

Accelerating Growth: AY7A's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: AY7A had negative earnings growth (-75.1%) over the past year, making it difficult to compare to the Semiconductor industry average (-17.8%).


Return on Equity

High ROE: AY7A's Return on Equity (5.2%) is considered low.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is ASM Pacific Technology's financial position?


Financial Position Analysis

Short Term Liabilities: AY7A's short term assets (HK$14.2B) exceed its short term liabilities (HK$5.1B).

Long Term Liabilities: AY7A's short term assets (HK$14.2B) exceed its long term liabilities (HK$4.9B).


Debt to Equity History and Analysis

Debt Level: AY7A's debt to equity ratio (28.7%) is considered satisfactory.

Reducing Debt: AY7A's debt to equity ratio has reduced from 31.1% to 28.7% over the past 5 years.

Debt Coverage: AY7A's debt is well covered by operating cash flow (76.4%).

Interest Coverage: AY7A's interest payments on its debt are well covered by EBIT (6.9x coverage).


Balance Sheet

Inventory Level: AY7A has a high level of physical assets or inventory.

Debt Coverage by Assets: AY7A's debt is covered by short term assets (assets are 4.2x debt).


Next Steps

Dividend

What is ASM Pacific Technology's current dividend yield, its reliability and sustainability?

2.84%

Current Dividend Yield


Dividend Yield vs Market

company2.8%marketbottom25%1.3%markettop25%3.7%industryaverage1.1%forecastin3Years3.1%

Current dividend yield vs market & industry

Notable Dividend: AY7A's dividend (2.84%) is higher than the bottom 25% of dividend payers in the German market (1.32%).

High Dividend: AY7A's dividend (2.84%) is low compared to the top 25% of dividend payers in the German market (3.63%).


Stability and Growth of Payments

Stable Dividend: AY7A's dividend payments have been volatile in the past 10 years.

Growing Dividend: AY7A's dividend payments have increased over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its high payout ratio (178.5%), AY7A's dividend payments are not well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: AY7A's dividends in 3 years are forecast to be covered by earnings (63% payout ratio).


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

3.9yrs

Average management tenure


CEO

Wai Lee (65yo)

13.1yrs

Tenure

HK$23,326,000

Compensation

Mr. Wai Kwong Lee has been the Chief Executive Officer at ASM Pacific Technology Ltd., a subsidiary of ASM International NV since January 01, 2007. Mr. Lee served as the Managing Director of ASM Technology ...


CEO Compensation Analysis

Compensation vs Market: Wai's total compensation ($USD3.00M) is about average for companies of similar size in the German market ($USD3.35M).

Compensation vs Earnings: Wai's compensation has been consistent with company performance over the past year.


Leadership Team

NamePositionTenureCompensationOwnership
Wai Lee
CEO & Executive Director13.1yrsHK$23.33m0.38% HK$18.1m
Cher Ng
CFO & Executive Director8.8yrsHK$8.68m0.039% HK$1.9m
Ching Man Tsui
COO, Executive Director2.8yrsHK$7.73m0.055% HK$2.6m
Yam Wong
Group CTO & Group Executive VP0yrsno datano data
Leonard Lee
Senior Manager of Investor Relations0yrsno datano data
Chuen Chow
Executive Vice President for Business Excellence3.8yrsHK$8.09mno data
Guenter Lauber
Group Executive VP & Group CEO of SMT Solutions Segment4.1yrsno datano data
Tia Lim
Group Executive Vice President of Corporate Operations4.1yrsno datano data
Tson Poh
Group Senior VP & Group CEO of Back-end Equipment Segment (Opto3.1yrsno datano data
Choon Lim
Senior VP & CEO of Back-end Equipment Segment1.1yrsno datano data

3.9yrs

Average Tenure

60.5yo

Average Age

Experienced Management: AY7A's management team is considered experienced (3.9 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Wai Lee
CEO & Executive Director13.1yrsHK$23.33m0.38% HK$18.1m
Cher Ng
CFO & Executive Director8.8yrsHK$8.68m0.039% HK$1.9m
Ching Man Tsui
COO, Executive Director2.8yrsHK$7.73m0.055% HK$2.6m
Charles del Prado
Non-Executive Director9.8yrsHK$350.00kno data
Orasa Livasiri
Independent Chairman of the Board2.9yrsHK$500.00kno data
Koon Hung Tang
Independent Non-Executive Director6.8yrsHK$396.00kno data
Petrus Antonius van Bommel
Non-Executive Director9.3yrsHK$300.00kno data
Kam Chong Lok
Independent Non-Executive Director12.9yrsHK$450.00kno data
Hon Wong
Independent Non-Executive Director7.2yrsHK$400.00kno data

8.8yrs

Average Tenure

62yo

Average Age

Experienced Board: AY7A's board of directors are considered experienced (8.8 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

ASM Pacific Technology Limited's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: ASM Pacific Technology Limited
  • Ticker: AY7A
  • Exchange: DB
  • Founded: 1975
  • Industry: Semiconductor Equipment
  • Sector: Semiconductors
  • Market Cap: HK$40.297b
  • Listing Market Cap: HK$4.797b
  • Shares outstanding: 408.90m
  • Website: https://www1.asmpacific.com

Number of Employees


Location

  • ASM Pacific Technology Limited
  • 8 Cheung Fai Road
  • 19th Floor, Gateway ts
  • Tsing Yi
  • New Territories
  • Hong Kong

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
ASMV.FOTCPK (Pink Sheets LLC)YesOrdinary SharesUSUSDJan 1992
522SEHK (The Stock Exchange of Hong Kong Ltd.)YesOrdinary SharesHKHKDJan 1992
AY7ADB (Deutsche Boerse AG)YesOrdinary SharesDEEURJan 1992
522SHSC (Stock Exchange of Hong Kong Limited - Shanghai - Hong Kong Stock Connect)YesOrdinary SharesHKHKDJan 1992
522SZSC (The Stock Exchange of Hong Kong - Shenzhen - Hong Kong Stock Connect)YesOrdinary SharesHKHKDJan 1992
ASMV.YOTCPK (Pink Sheets LLC)UNSPONSORD ADRUSUSDNov 2008

Biography

ASM Pacific Technology Limited, an investment holding company, engages in the design, manufacture, and marketing of machines, tools, and materials used in the semiconductor and electronics assembly industries worldwide. It operates through three segments: Back-end Equipment, Surface Mount Technology Solutions, and Materials. The Back-end Equipment segment manufactures and markets a line of assembly and packaging equipment for the microelectronics, semiconductor, photonics, and optoelectronics industries. This segment’s products include AOI/FOL equipment, die attach equipment, CIS equipment, dispensing equipment, factory automation equipment, encapsulation solutions equipment, automatic trim and form systems, test and finish handling systems, wafer separation systems, and wire bonding equipment, as well as light emitting diode testing, sorting, and taping systems. The Surface Mount Technology Solutions segment develops and sells DEK printers for the surface mount technology (SMT), semiconductor, and solar markets, as well as SIPLACE SMT placement solutions. The Materials segment engages in the production and sale of semiconductor packaging materials. This segment offers etched and stamped leadframes used by multinational chip manufacturers, independent integrated circuit assembly houses, and consumer electronics manufacturers; molded interconnect substrates; and IC and small signal discrete products. The company also trades in surface mount technology equipment, and semiconductor equipment and materials; and provides marketing services. ASM Pacific Technology Limited was founded in 1975 and is based in Tsing Yi, Hong Kong. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/02/20 21:44
End of Day Share Price2020/02/20 00:00
Earnings2019/09/30
Annual Earnings2018/12/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.