Consumer electronics lift ASM profit 10pc
ASM Pacific Technology, the world's largest semiconductor assembly equipment supplier by sales, said last year's profit rose 10.43 per cent as demand for consumer electronic products picked up in the second half.
Profit rose to HK$1.27 billion from HK$1.15 billion a year ago on an 18.3 per cent sales gain to HK$5.39 billion.
Second-half profit increased 37.9 per cent to HK$723 million from a year earlier, offsetting a 12.6 per cent decline in the first half.
'Our order intakes began to rebound during the first quarter and the momentum continued unabated throughout the rest of the year,' ASM Pacific chief executive Lee Wai-kwong said. 'Consumer electronics such as mobile phones and digital cameras continued to be the driver of growth for the semiconductor industry in 2007. This market is now estimated to absorb half of semiconductor output and will continue to grow.'
Despite concerns about the global impact of the subprime crisis in the United States, Mr Lee said the fundamentals of the semiconductor industry would remain healthy this year.
'ASM Pacific's full-year profit is in line with our forecast,' said Ng Sze-ho, an analyst at BNP Paribas. 'We are surprised to see an increase in the company's order backlog, which shows that the semiconductor industry is not as bad as previously expected.'
Mr Ng has a 'buy' recommendation on ASM Pacific shares with a target price of HK$60.
ASM Pacific's revenue from equipment products, which accounted for 80 per cent of total sales, rose 20.3 per cent to HK$4.31 billion last year while segment profit was up 18.1 per cent at HK$1.33 billion.
Revenue from lead frame products, used in chips packaging, grew 11.2 per cent to HK$1.08 billion with segment profit declining 22.4 per cent to HK$94 million.
ASM Pacific had orders of US$150 million at the end of December.
The company proposed a final dividend of HK$1.10, up 10 per cent, and doubled a special dividend 40 HK cents.
Shares in ASM surged 2.91 per cent to close at HK$53.10 yesterday.
