Asmpt Ltd

Good morning, ladies and gentlemen. I'm Ben Poe, Head of Investor Relations, and today I will be moderating the call. On behalf of ASMPT Limited, welcome to our first quarter 2026 investor conference call. Thank you all for your interest and continued support. Please note that all participants will be in listen-only mode during the presentation by the management. We will start the Q&A session after the presentation. During the Q&A session, priority will be given to the covering analysts. Before we start, let me go through our disclaimer. Please note that there may be forward-looking statements about the company's business and finances during this call. Such forward-looking statements could involve known and unknown uncertainties and risks that could cause actual results, performance, and events to differ materially from those expressed or implied during this conference call. For your reference, the investor relations presentation on our recent results is available on our website. On today's call, we have the Group Chief Executive Officer, Mr. Robin Ng, and the Group Chief Financial Officer, Ms. Katie Hsu. Robin will cover the Group's key highlights for the first quarter 2026 and provide outlook and guidance for the following quarter. Katie will provide details on the financial performance for the quarter. Now, I will hand the time over to our Group Chief Executive Officer, Robin.

Thank you, Ben. Good morning and good afternoon and good evening to all. Thank you for joining us today for our first quarter 2026 earnings conference call. Now, let me start with the key business highlights for Q1. This quarter, I'm pleased to share that ASMPT achieved the highest quarterly bookings and billings in the last few years. We continue to see AI drive demand across multiple products as the rapid evolution of AI increases the value and complexity of back-end semiconductor manufacturing. New AI architectures demand heterogeneous integration tighter interconnect pitch, higher bandwidth, and power efficiency. And these requirements are driving higher precision, alignment, and process control needs across packaging flows. Benefiting a wide range of the group's product, from TCB, photonics, CPO, flip chip, and mainstream wire and die bonding, and pick and place solutions. Let me provide some color on these specific product areas. First, let's look at TCB. In logic, we delivered sizeable shipments for chip-to-substripe applications, reinforcing our leadership in chip-to-substripe TCB. We received bookings for 4 out of 5 fish-chip-to-wafer TCB tools featuring our fluxless plasma-based AOR technology from a leading advanced logic customer. We are also actively engaging key logic players across multiple programs and we are well positioned for more opportunities as the industry advances towards more complex logic chip architectures. In memory, our TCB tools remain at the forefront of technology development. A key memory player is using a flux-based CCB tool for assembly, and this customer is also qualifying a Fluxus AOR solution for HBN4-16i. Next, we'd like to share an update on photonics. I'm pleased to report that our photonics revenue grew nearly 5-fold year-on-year, benefiting from strong demand for high-speed optical transceivers of 800G and above. In addition, our 1.6T transceiver solution received bulk orders from leading optics suppliers in the data center networking supply chain. This demonstrates strong traction for optical transceiver solution as a market leader. I would like now to touch a bit on cold package optics for CPO before we move on to the next item. CPO represents a paradigm shift in AI system design, bringing optical engines closer to compute silicon to reduce electrical losses, lower power consumption, and improve system efficiency. Our CPO solutions enable high precision bonding to integrate diverse components, including fiber array unit, microlens, electronic IC, and Photonet EyeSafe into a single high-performance optical engine. We have deepened our engagement with multiple leading global players, and this positioned the group well to gain market share as CTO adoption accelerates. Looking now at our flipchart solutions, I am pleased to update that they registered strong bookings growth both QonQ and YonQia. This momentum is coming from two areas. First, there is an accelerated adoption of 2.5D packaging for larger AI package sizes that is driving a steady pipeline of opportunities for embedded bridge-type bonding solutions for both chip-on-wafer and chip-on-panel solutions. Second, we also gain traction in panel-level fan-up for radio frequency and power devices. Both these areas are well served by our flip-chip solutions, which combine cost efficiency, scalability, high placement accuracy, and strong throughput. And finally, in our mainstream business, we register strong bookings for both SEMI and S&T. SEMI's mainstream business benefited from sustained utilization as leading global IDMs and OSETs. alongside rising demand for AI data center power management solutions. In China, there was increased demand for wire and die bonding applications. For SMT, we achieved record bookings in Q1, driven by strong customer demand across AI servers, optical transceivers, and China EVs. In particular, SMT HiFlex high-force solutions for large format bots are a leading choice for AI server assembly. As we broaden our AI customer base, we are fully committed to delivering the highest quality of solutions and services. ASMPG was recently recognized with a prestigious Intel Epic Supplier Award for 2026, the highest supplier recognition award for excellence in business collaboration. This is a reflection of a strong technical capability and deep engagement with our customers. With these highlights, now let me hand over the time to Katie, who will walk you through our group and segment financial performance.

Thank you, Robin. Good morning and good evening, everyone. Before I start, I would like to say that unless otherwise specified, the numbers I'll be referring to today are for the group's continuing operations only. with adjustments made on the non-HKFRS measures. This slide covers our group financial results for Q1 2026. In Q1, the group delivered revenue of $507.9 million, flat Q on Q, but up 32.0% year on year, driven by SMT and SEMI. Group revenue came in above market consensus and was the highest in the last three years. Group quarterly bookings exceeded expectations, with SMT bookings at a record level. Group's bookings reached $727.0 million, up 46.0% Q&Q and 71.6% year-on-year, the highest in the last four years. This strong growth came from multiple products, notably SMT products, Y-bonders and Y-bonders, and photonics. Group adjusted gross margin was 39.5% Q on Q, up 357 basis points due to higher gross margin and revenue contribution from SEMI. The year-on-year decline of 151 basis points was due to a higher revenue contribution from SMP. Groups adjusted all tax declined 4.6% Q on Q, but increased 12.4% year-on-year, largely due to unfavorable FX impact. and from strategic infrastructure and R&D investments, as we have guided for 2026 during our last earnings call. Both adjusted operating profit and adjusted net profit improved QMQ and year-on-year due to higher revenue and operating leverage. Adjusted EPS was at 81 cents Hong Kong dollars, up 118.9% QMQ and 189.3% year-on-year, which was above market consensus. Moving on to the Semi-Conductor Solution segment. In Q1, Semi revenue delivered 274.5 million US dollars, up 12.2% Q on Q and 14.6% Y on Y. Q on Q growth was driven by high-end die-bounders and PCB, while Y on Y growth came in from multiple products, largely driven by AI-related applications. Semi bookings were 309.6 million US dollars, up 22.6% Q on Q and 43.2% Y on Y due to higher demand for Y-bonders and Y-bonders driven by China OSAPs, high-end smartphone-related applications, AI-related power management applications, and optical transceivers. Semi achieved a book-to-bill ratio of 1.13, which marks three consecutive quarters of improvement. Then the adjusted gross margin reached 46.4%, achieving the guidance we set last quarter. Adjusted gross margin improved by 594 basis points Q on Q, but declined slightly by 37 basis points E on E. The significant Q on Q improvement was mainly driven by high volume and favorable product mix. Then the adjusted segment profit was 309.4 million Hong Kong dollars, up 165.9% QMQ and 16.8% year-on-year. The strong QMQ improvement was mainly driven by higher gross margins and operating leverage. Let me move to S&T. S&T QM revenue was $233.5 million, down 11.0% QMQ, but up 60.7% year-on-year. QMQ decline was due to seasonality, while year-on-year increase was due to strong demand from AI servers and China EVs. As mentioned earlier, SMT achieved a record bookings of $417.4 million, up 70.0% QMQ and 101.1% year-on-year. This was primarily driven by strong demand from AI servers, optical transceivers, and China EVs. together with robust China demand arising from global data center expansion. S&P adjusted segment profit was 141.8 million Hong Kong dollars, down 28.3% Q on Q due to lower volume, but it improved young year. Now let me hand the time back to Robin for the outlook and the revenue guidance.