Asmpt Limited Unsp/Adr

Good morning and good evening, ladies and gentlemen. This is Justin Tan, and I will be moderating today's call. On behalf of ASMPT Limited, welcome to our first quarter 2025 investor conference call. Thank you 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, Proudly will be given to the covering analyst. 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 for 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 Sheaf. Robin will cover the Group's highlights, outlook, and next quarter's guidance, while Katie will provide details on the financial performance. Now I'll hand over to our Group Chief Executive Officer, Robin. Robin.

Thank you, Justin. Good morning and good evening to everyone today. It is a pleasure to have you all on our earnings conference call for the first quarter of 2025. Now let's start with the key highlights of the first quarter. We achieved group revenue of US$401.5 million, which met the midpoint of revenue guidance. The group's advanced packaging solutions continue to be a major beneficiary of AI adoption. AP solutions continue to deliver strong performance led by our thermal compression, bonding, or TCP tools. The group completed the delivery of the bulk TCB order to the leading memory maker. And these solutions are mainly used for HBM 3E 12 high high volume manufacturing. This order, the group expanded its TCB HBM customer base. We want initial orders from another global HBM customer. which has been followed by further orders in April 2025. There were also continued bookings for chip-to-substrate tools serving the logic market, where our tool is a process of record. And lastly, within TCB, our chip-to-wafer TCB tools, enabled with active offset removal fluxless capability have progressed from qualification to pilot production and the leading country. This encouraging development demonstrates our technological advantage in fluxes tools. The strong progress made this quarter in TCB further solidifies our leadership in the market. And our focus for 2025 is on securing additional orders from both HVM and Logic customers. Moving on to Group Gross Margin. This quarter, we saw a rebound in Group Gross Margin, which exceeded 40% and was driven mainly by better product mix in both segments. To finish this overview, the group's mainstream business continue to be affected by soft demand from automotive and industrial end markets. While the growth trajectory of the mainstream business is difficult to forecast given the current environment, we are fully prepared to seize opportunities when the market recovers. With that, let me now pass the time over to Katie, who will talk about our group and segment performance. Tim.

Thank you, Robin. Good morning and good evening, everyone. This slide covers the group's key financial metrics for the first quarter of 2025. Group revenue met the midpoint of guidance, totaling $401.5 million. Group bookings delivered $431.2 million, which was better than expected, showing a 2.9% growth quarter-on-quarter and 4.8% growth year-on-year. The quarter-on-quarter increase was mainly due to higher SMT bookings, partially offset by lower semi bookings from a high base effect in Q4 2024. The year-on-year increase was driven by semi, which has shown year-on-year quarterly bookings growth over the past six quarters. In the first quarter, the group's gross margin was up 371 basis points quarter-on-quarter, but down 97 basis points year-on-year. The quarter-on-quarter improvement was due to both SEMI and SMT. Disciplined cost control measures and seasonality reduced the group's operating expenditure by 11.3% quarter-on-quarter. However, year-on-year operating expenses were up 4.1% due to the investments in strategic infrastructure and R&D to drive growth in our AP business. Thus, the adjusted net profit was HK$83.2 million, up 1.6% quarter-on-quarter, but down 53.1% year-on-year. The year-on-year decline was due to a combination of previously mentioned slight reduction gross margin and OPEX increase for strategic investments, as well as Forex effects. For the first quarter of 2025, Semi revenue grew to $255.6 million, up 0.6% quarter-on-quarter and 44.7% year-on-year. Semi contributed about 64% of the group's revenue. In Q1, semi-registered revenue for the bulk order of TCV2s delivered to a leading HBM customer. Semi-bookings were $222.9 million, down 19.5% quarter-on-quarter, but up 11.4% year-on-year. In Q1, there were new TCV bookings. which included initial orders from another global HBM customer, with further orders placed in April 2025. There were also continued bookings for chip-to-substrate tools serving the logic market, where the tool is the process of record. In addition, there were mainstream wins for high-end smartphones and automotive applications. The quarter-on-quarter bookings drop was mainly due to a high base effect from the bulk TCB order in Q4 2024, while year-on-year increase was mainly due to TCB orders. Semi's gross margin of 46.3% for Q1 2025 was up 368 basis points quarter-on-quarter, mainly driven by higher AP mix and benefit from one-off items that impacted Q4 margin. Gross margin was up by 167 basis points year-on-year. In addition, as mentioned earlier, OPEX reduced the quote-on-quarter due to disciplined cost control measures and seasonality. Lastly, CEMI's profit was HK$235.9 million in Q1 2025, an increase of 215.9% quarter-on-quarter. Moving on to the SMT business. SMT delivered revenue of $145.9 million in the first quarter of 2025, a decline of 20.3% quarter-on-quarter, and a 35.6% young year, in line with ongoing softness in its overall market. SMT bookings of $208.4 million were up strongly. 46.5% quarter-on-quarter, driven by strong seasonal system-in-package or SIP bookings. The automotive and industrial end markets appeared to have stabilized, but remained soft. S&T's gross margin of 31.5% was up 180 basis points quarter-on-quarter, but down 827 basis points year-on-year. Quote-unquote improvement was due to favorable product mix, while the year-on-year drop was mainly due to lower sales volume. Segment loss was HK$5.3 million in Q1 2025 due to lower sales volume. I will now pass the time back to Robin.