ASMPT Announces 2018 Annual Results

ASMPT Achieved Another Record Year in 2018

�

Highlights

2018

• Record Group revenue of US$2.49 billion, representing
  an increase of 11.6% over the preceding year
• Net profit of HK$2.21 billion, representing a decrease
  of 20.9% over the preceding year and a decrease of 14.7% when the non-cash gain
  of HK$202.1 million in 2017 was excluded
• Earnings per share of HK$5.47
• Record Back-end equipment revenue of US$1.18 billion,
  representing an increase of 7.3% over 2017
• Record Materials revenue of US$287.8 million,
  representing an increase of 5.2% over 2017
• Record SMT solutions revenue of US$1.03 billion,
  representing an increase of 19.1% over 2017
• Record new order bookings of
  US$2.57 billion, representing an increase
  of 10.0% over 2017
• Book to bill ratio was 1.03
• Cash and bank deposits of HK$2.25 billion at the end
  of December 2018

Second Half of 2018

• Record half-year Group revenue of US$1.27 billion,
  representing increases of 6.4% and 3.3% over the second half of 2017 and the
  first half of 2018, respectively
• Net profit of HK$814.3 million and earnings per share of
  HK$2.01, representing decreases of 38.1% and 41.7% over the second half of 2017
  and the first half of 2018, respectively
• Half-year Back-end equipment revenue of US$536.2
  million, representing decreases of 0.2% and 16.9% over the second half of 2017
  and the first half of 2018, respectively
• Half-year Materials revenue of US$136.8 million,
  representing decreases of 1.5% and 9.3% over the second half of 2017 and first
  half of 2018, respectively
• Record half-year SMT solutions revenue of US$594.3
  million, representing increases of 15.3% and 37.9% over the second half of 2017
  and the first half of 2018, respectively
• New order bookings of
  US$1.09 billion, representing an increase of 2.1% as compared with the second half of 2017 and a decrease of 26.3% over the first
  half of 2018

Fourth Quarter of 2018

• Group revenue of US$608.9 million, representing an
  increase of 12.8% over the fourth quarter of 2017 and a decrease of 7.7% over
  the preceding quarter
• Net profit of HK$212.2 million and earnings per share
  of HK$0.52, representing decreases of 53.2% and 64.8% over the fourth quarter
  of 2017 and the preceding quarter, respectively
• Group bookings decreased by 4.5% and 23.3% as compared
  with the fourth quarter of 2017 and the preceding quarter
  respectively
• Backlog amounted to US$654.9 million as of end 2018, an increase of 21.6% compared with a year ago

 

HONG
KONG, CHINA - Media OutReach - 22
February 2019 - The world’s
No.1 semiconductor assembly and packaging solutions supplier ASM Pacific Technology Limited (“ASMPT” / the “Group”) (Stock code: 0522) today announced its annual results for
the year ended 31 December 2018. Building on the momentum and achievements of the past two
years, 2018 was yet another solid year for the Group. Both Group booking and billing
attained new records. Group revenue grew 11.6% year-on-year to US$2.49 billion.
Group revenue has in fact, consecutively set new records over the past three
years.

 

ASMPT reported
a revenue of HK$19.55 billion in the year ended 31 December, 2018, representing an increase of 11.6% as
compared with HK$17.52 billion in the previous year. The Group’s consolidated profit after taxation for the year was HK$2.21 billion,
which was 20.9% lower than the previous year. Basic earnings per share for the year
amounted to HK$5.47 (2017: HK$6.90). Gross margin of the Group was 38.0%.

 

The Board
of Directors recommends a final dividend of HK$1.40 (2017: final dividend of
HK$1.30) per share. The total dividend payout for 2018 is HK$2.70 (2017: HK$2.50)
per share, with a payout ratio of 49.4%.

 

Group bookings grew 10.0% year-on-year to US$2.57
billion in 2018, setting a new record. Book-to-bill ratio was 1.03. Backlog as
of end of the year was US$654.9 million, which was a growth of 21.6%
year-on-year. Booking of both the Back-end Equipment Segment and the SMT
Solutions Segment achieved year-on-year double-digit growth rates with booking
of the SMT Solutions Segment having attained a new record.

 

Mr. Lee Wai Kwong,
Chief Executive Officer of ASMPT, said, “The
strong performance of the Group was largely driven by the strong demand of
IC/Discrete equipment, lead frames and SMT solutions. All the three business
segments achieved new revenue records in both 2017 and 2018.  Also, we are pleased to see good progress from
businesses that it had acquired over the past few years as the SMT Solutions
Segment and ALSI continued to deliver outstanding results. The SMT Solutions
Segment saw its revenue exceeded US$1 billion in 2018, with a record segment
profit of HK$1.27 billion. ALSI, the laser business that was acquired in 2014,
achieved a new record in revenue in 2018 that was around fivefold that of 2014.”

 

ASMPT’s
Back-end Equipment Segment attained
consecutive new billing records in 2017 and 2018. In 2018, revenue of our
Back-end equipment business grew 7.3% to US$1.18 billion, contributing 47.4% of
the Group’s total revenue. The segment continued to retain the No. 1 position
in the global market, a position it first attained in 2002.  In fact, over the past 17 years, the Group
had lost the No. 1 position only once – in 2012.  It further widened the revenue gap with its closest
rival.

 

The IC/discrete market led the growth
of ASMPT’s Back-end equipment business in the year. It was the largest market
by revenue for the segment and delivered a year-on-year growth of over 24% in
2018. Automotive electronics, IoT (Internet of Things), power
management, radio frequency (RF) filters and Advanced Packaging were the
drivers of growth in this market segment.

 

Artificial intelligence (AI) is widely expected
to experience fast growth and will boost the semiconductor industry and the
world GDP, the Group’s TCB (Thermo-Compression Bonding) solution is now widely
adopted by many customers for their development and production of advanced
logic chips. It is also working with customers to develop the next-generation
production process for HBM (high bandwidth memory).

 

For
Advanced Packaging, the acquisition of the ASM NEXX business in the fourth
quarter further strengthened the Group’s position in Advanced Packaging as
evident in its significant contribution to the booking of our Back-end
Equipment Segment in the last quarter of 2018. The Group is confident that its investment in
Advanced Packaging over the past few years has put ASMPT well ahead of its
peers and anticipates that contribution from Advanced Packaging will further
increase in 2019, helping the Group to sail through industry low cycles like the
one that has been expected for 2019 by many industry analysts and participants.

 

In summary, the Group believes that it
has put in place a right product and technology portfolio to take advantage of
the continuous technology transition and to capture the new growth
opportunities for this segment.

 

In 2018, the SMT Solutions Segment did exceptionally
well. The segment achieved new records in billing, booking and segment profit
consecutively for the past two years. In 2018, its revenue grew 19.1% to US$1.03
billion, contributing 41.1% to the Group’s revenue.

 

During the second half of the year, revenue of ASMPT’s
SMT Solutions Segment amounted to US$594.3 million, representing growths of 15.3%
and 37.9% compared with the same period in 2017 and the preceding six months,
respectively, which is a new record.

 

In the fourth quarter, the Segment set yet another new revenue
record with an amount of US$315.5 million, representing growths of 40.3% and 12.9%
against the same period of the previous year and the preceding quarter,
respectively. Booking of the SMT Solutions Segment grew 16.7% in 2018 to US$1.07
billion, attaining yet another new record.

 

Tremendous demand for automotive
electronics, industrial and IoT contributed to the strong growth of the Group’s
SMT Solutions business. The Group also expanded its market share in the supply
chain for China branded smartphones and made a significant penetration into the
India market. Industry 4.0 is yet another huge business growth opportunity for
our SMT Solutions Segment as customers are looking for smart factory solutions.

 

ASMPT’s Materials Segment continued to
set new billing records in 2018. Both revenue for the year and revenue for the
first half of the year attained new records. Revenue of the segment amounted to
US$287.8 million, representing a growth of 5.2% from the previous year.

 

“While the first three quarters of 2018 had been strong, the Group
ended the year with some uncertainties ahead. Both indicators, booking of lead
frames and Group booking in the fourth quarter, pointed to a possible slowdown
of the market in 2019.

 

However, fundamental drivers for the long term
growth of the global semiconductor industry remain unchanged. Many new
technologies and applications such as AI, big data analysis, HPC, data centers,
5G communications, IoT, Industry 4.0, ADAS, VR and AR, to name a few, are
driving demand for semiconductor devices. ASMPT is prepared to take advantage
of all these new developments as it has created an unparalleled product and
solution portfolio through internal development and acquisitions over the past
few years. We believe ASMPT has entered into a high growth period.“ Mr. Lee
concluded.

About ASM Pacific Technology Limited

As a global technology
and market leader, ASMPT (HKEX stock code: 0522), develops and provides leading
edge solutions in surface mount technology, equipment and materials for the
semiconductor assembly and packaging industries. Its surface mount technology
solutions are deployed in a wide range of end-user markets including
electronics, mobile communications, automotive, industrial and LED. Our
continuous investment in research and development help to provide our customers
with innovative and cost-efficient solutions and systems that enable them to
achieve higher productivity, greater reliability and enhanced quality.

 

Listed
on the Hong Kong Stock Exchange since 1989, ASMPT is currently one of the
constituent stocks on the Hang Seng Composite MidCap Index under the Hang Seng
Composite Size Indexes, the Hang Seng Composite Information Technology Industry
Index under Hang Seng Composite Industry Indexes, the Hang Seng Hong Kong 35
Index and the Hang Seng Global Composite Index. To learn more about ASMPT,
please visit our website at www.asmpacific.com.

 

 

 

(N.B.: Enclosed please find the
Consolidated Statement of Profit or Loss, Consolidated Statement of Profit or Loss and Other Comprehensive Income and Consolidated Statement of
Financial Position of ASM Pacific Technology Limited.)

/>

ASM PACIFIC
TECHNOLOGY LIMITED

CONSOLIDATED STATEMENT OF PROFIT OR LOSS

			Three months ended 31 Dec			Year ended 31 Dec
			2018	2017		2018	2017
			(unaudited)	(unaudited)		(audited)	(audited)
			HK$’000	HK$’000		HK$’000	HK$’000
Revenue			4,767,696	4,227,229		19,550,590	17,522,713
Cost of sales			(3,196,406)	(2,568,194)		(12,113,813)	(10,471,339)
Gross profit			1,571,290	1,659,035		7,436,777	7,051,374
Other income			11,648	16,754		96,126	88,410
Selling and distribution expenses			(478,461)	(432,485)		(1,660,893)	(1,497,944)
General and administrative expenses			(251,290)	(276,180)		(1,013,345)	(937,624)
Research and development expenses			(424,060)	(381,639)		(1,610,225)	(1,436,191)
Other gains and losses			(1,174)	(19,849)		(78,455)	(33,360)
Restructuring costs			(19,067)	–		(19,067)	–
Adjustment of liability component of   convertible bonds			–	–		–	202,104
Finance costs			(51,065)	(36,913)		(177,762)	(162,489)
Profit before taxation			357,821	528,723		2,973,156	3,274,280
Income tax expense			(145,606)	(75,747)		(761,428)	(478,578)
Profit for the period			212,215	452,976		2,211,728	2,795,702
Profit (loss) for the period attributable to:
Owners of the Company			211,161	457,941		2,216,062	2,815,473
Non-controlling interests			1,054	(4,965)		(4,334)	(19,771)
			212,215	452,976		2,211,728	2,795,702
Earnings per share
– Basic			HK$0.52	HK$1.12		HK$5.47	HK$6.90
– Diluted			HK$0.52	HK$1.12		HK$5.44	HK$6.35

ASM PACIFIC TECHNOLOGY LIMITED
CONSOLIDATED STATEMENT OF PROFIT OR LOSS AND OTHER COMPREHENSIVE INCOME

		Three months ended 31 Dec					Year ended 31 Dec
		2018		2017			2018	2017
		(unaudited)		(unaudited)			(audited)	(audited)
		HK$’000		HK$’000			HK$’000	HK$’000
Profit for the period		212,215		452,976			2,211,728	2,795,702
Other comprehensive (expense) income
– exchange differences on translation
of foreign operations, which may be
reclassified subsequently to profit or
loss		(29,632)		104,846			(273,227)	575,484
– remeasurement of defined benefit
retirement plans, net of tax, which will
not be reclassified to profit or loss		3,400		3,023			3,400	3,023
Other comprehensive (expense) income for
the period		(26,232)		107,869			(269,827)	578,507
Total comprehensive income for the period		185,983		560,845			1,941,901	3,374,209
Total comprehensive income (expense) for
the period attributable to:
Owners of the Company		186,904		565,813			1,948,645	3,393,984
Non-controlling interests		(921)		(4,968)			(6,744)	(19,775)
		185,983		560,845			1,941,901	3,374,209

ASM PACIFIC TECHNOLOGY LIMITED
CONSOLIDATED STATEMENT OF FINANCIAL POSITION

			At 31 December
			2018	2017
			HK$’000	HK$’000
Non-current assets	?			?
Property, plant and equipment			2,850,450	2,426,005
Investment property			56,206	60,340
Goodwill			1,057,816	408,696
Intangible assets			1,305,622	542,101
Prepaid lease payments			126,732	115,046
Other investments			56,355	18,502
Pledged bank deposits			–	2,153
Deposits paid for acquisition of property,
plant and equipment			40,672	33,263
Rental deposits paid			42,033	36,120
Deferred tax assets			355,210	361,673
Other non-current assets			16,343	24,761
			5,907,439	4,028,660
Current assets
Inventories			6,541,939	5,368,889
Trade and other receivables			6,324,901	6,058,686
Prepaid lease payments			3,863	3,849
Derivative financial instruments			1,852	13,289
Income tax recoverable			44,134	66,553
Pledged bank deposits			2,054	3,351
Bank deposits with original maturity of more
than three months			9,198	691,018
Bank balances and cash			2,240,022	2,365,911
			15,167,963	14,571,546
Current liabilities
Trade liabilities and other payables			3,165,478	3,378,260
Advance payments from customers			718,694	642,595
Derivative financial instruments			32,697	234
Obligations under finance leases			410	–
Provisions			330,933	295,825
Income tax payable			533,701	349,999
Convertible bonds			2,224,652	–
Bank borrowings			786,021	117,219
			7,792,586	4,784,132
Net current assets			7,375,377	9,787,414
			13,282,816	13,816,074
Capital and reserves				?
Share capital			40,667	40,908
Dividend reserve			569,340	528,175
Other reserves			11,557,541	10,808,542
Equity attributable to owners of the Company			12,167,548	11,377,625
Non-controlling interests			(6,893)	(149)
Total equity			12,160,655	11,377,476
Non-current liabilities
Convertible bonds			–	2,121,830
Obligations under finance leases			736	–
Retirement benefit obligations			171,515	183,277
Provisions			48,528	50,242
Bank borrowings			473,740	–
Deferred tax liabilities			250,783	39,996
Other liabilities and accruals			176,859	43,253
			1,122,161	2,438,598
			13,282,816	13,816,074