Earning First Take : FY21 Net profit surge 399% y-o-y, ahead of market consensus
- FY21 Revenue and profit surged 49.3% and 399% y-o-y, ahead of the market consensus by 1.8%/21.6%
- Outstanding performance due to the persistently strong Capex investment in the semiconductor industry
- Automotive and industrial market expected to remain strong growth in 2022
- Expect the Capex investment to accelerate and with a potential of peaking in 2022
- Expect near-term share price support
What’s New
– ASM Pacific (522 HK) announced its 4Q21 and FY21 results before HK market start today.
– 4Q21 Revenue maintained a strong growth at 43.9% y-o-y and FY21 revenue increased 49.3% y-o-y
– 4Q21 Booking growth slow to 25.0% y-o-y while the FY21 Booking raised 65.6%
– Segment-wise, Semiconductor solutions 4Q revenue increased by 15.5% y-o-y to HK$ 41.0bn, resulting in an FY21 revenue of HK$135.1bn, up 69.6% y-o-y
– SMT solutions 4Q21 revenue decreased 21.7% y-o-y to HK$ 21.0 bn, resulting in an FY21 revenue of HK$84.3.1bn, up 25.3% y-o-y
– Semiconductor solutions and SMT solutions’ margin up 3.04ppt and 4.41ppt y-o-y in FY21.
– 4Q Net profit soared 693.8% y-o-y to HK$ 910.8 m while FY21 Net profit increased 398.8% y-o-y to HK$ 3.18bn, ahead of the market consensus by 21.6% and 8.6% respectively, FY21 EPS was HK$ 7.72.
Our View:
– The unaudited FY21 revenue and profit beat FY21 market consensus by 1.8%/21.6%. The outstanding performance is due to the robust growth experienced in the automotive, consumer and industrial market, driven by persistently strong Capex investment in the semiconductor industry.
– We expect the growth in the automotive and industrial market of the semiconductor industry to remain strong growth in 2022 due to supply tightness and strong end-market demand.
– We expect the Capex investment to accelerate and with a potential of peaking in 2022
– Near-term share price support is expected owing to FY21 revenue and profit ahead of the market consensus and expectation of quarterly revenue growth in 1Q22 in management’s guidance
– We currently rate BUY on the counter with TP at HK$125.