Summary: ASM Pacific Technology Ltd.

Established market leader with cost leadership in semiconductor backend equipment. Good research and development capabilities that support new businesses and products growth. High business concentration in volatile semiconductor equipment market with relatively small scale of operation. Rapidly evolving industry and technological requirements. Low debt leverage and moderate capital expenditure requirements. High cash flow volatility due to the nature of semiconductor industry cycles. More aggressive dividend payout than peers. Solid financial flexibility with limited short-term borrowing and abundant cash reserves. The stable outlook reflects our expectation that ASM Pacific Technology (ASMPT) is likely to maintain a good competitive position in the growing semiconductor backend equipment and surface-mount technology (SMT) businesses over the next 12 months. We also expect ASMPT to maintain

...High business concentration in volatile semiconductor equipment market with relatively small scale of operation....

Summary