Daily Investment Strategy
Daily focus：ASMPT（522）
ASMPT delivered a solid performance in the second quarter of 2025, with revenue reaching HKD 3.4 billion, representing a year-on-year growth of 2% and a quarter-on-quarter increase of 9%, meeting market expectations. Although the gross margin slightly contracted to 39.7% due to changes in product mix and currency effects, the SMT segment received strong orders, growing 29% quarter-on-quarter, reflecting smartphone customers expanding production lines and rising demand in the AI server market. The company expects third-quarter revenue to range between HKD 3.5 billion and 3.9 billion. The outlook for mainstream semiconductor and SMT businesses has improved, particularly driven by demand from the electric vehicle and consumer electronics markets in China, with the drag on core businesses gradually dissipating.
Trade agreement boosts US stocks to new highs
The most heated topic this week is the conclusion of the US-Japan trade agreement. The United States imposes a 15% tariff on Japanese imports in exchange for Japan's commitment to invest US$550bn in the United States, covering the automotive and agricultural sectors. This agreement is seen as a template for EU negotiations to avoid the threat of a 30% high tariff starting August 1. The S&P 500 index hit a record high for the fourth consecutive day, rising slightly by 0.1% to 6,363.7 points, but market volatility has intensified. Although EU officials are open to the 15% base tax rate, they are worried about the limited exemptions for industries such as steel. This development eases the risk of global supply chain disruptions but intensifies the discussion of retaliatory tariffs within the EU, reshapes the transatlantic trade pattern, affects the cost increase of automakers and pushes up inflation expectations. This structural change is driving investors to reassess the long-term impact of geopolitical risks on technology and manufacturing.
Hong Kong Stock Connect recorded a net inflow of HK$3.72bn on Thursday, of which Tencent (0700) recorded the largest net inflow of HK$540mn, followed by the Hong Kong Stock Exchange. Xiaomi Group (1810) recorded the largest net outflow of HK$470mn, followed by Alibaba (9988).
Leung Kai Tong is a SFC licensed person accredited to KGI Group to carry on regulated activities (for details, please refer to: https://apps.sfc.https://apps.sfc.hk/publicregWeb/indi/ADU276/details). He and/or his associate do not have any financial interest in the recommended issuer or new listing applicant.
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