ASE Technology Holding (3711) Earnings: 2Q Results Fall Short of Estimates with Net Income at NT$7.52 Billion

ASE Technology Holding on Smartkarma

ASE Technology Holding is under the analyst coverage on Smartkarma, receiving varied sentiments from top analysts. Vincent Fernando, CFA, expressed a bearish lean towards ASE, citing concerns about global slowdown risks, valuation, and limited exposure to AI/advanced packaging drivers. Despite slight profit misses in 1Q25 and seasonal softness in operations, ASE’s focus on LEAP advanced packaging and AI testing is noted, contributing to about 6% of revenue. The overall outlook remains neutral, with vulnerability to global slowdown, uncertainty from tariffs, and valuation concerns amidst growth risks in 2H25.

On the flip side, analyst Patrick Liao holds a bullish sentiment on ASE, predicting a slight upside in 2Q25 with expectations of growth in OSAT revenue and continued strength in the high-end market segment. Liao also factors in uncertainties for the 2H due to tariffs but sees potential from the new US BIS policy. Despite a seasonal decline in 1Q25, Liao remains optimistic about the impact of the US BIS policy on ASE’s business. This report highlights the company’s resilience in the automotive segment and ongoing inventory corrections for low-end products, setting the stage for potential growth moving forward.

A look at ASE Technology Holding Smart Scores

Smart Score is a compound score for the Company indicating its overall outlook. It is derived by taking an equally weighted average of underlying Factor scores computed by Smartkarma

Analysts are looking favorably at the long-term prospects of ASE Technology Holding, with a strong momentum score of 5 indicating significant positive market momentum. While the company scores moderately in value, dividend, and growth factors with a score of 3 across the board, its lower resilience score of 2 raises some concerns. ASE Technology Holding is focused on assembly and testing services, with operations based in Taiwan, making it a key player in the semiconductor industry.

Investors considering ASE Technology Holding should take note of its balanced overall outlook, with strengths in momentum while also considering the lower resilience score. The company’s core business of providing assembly and testing services in the semiconductor sector positions it well for future growth potential. With average scores in value, dividend, and growth, investors may find ASE Technology Holding to be a stable investment option with promising long-term prospects within the industry.

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