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2026-06-29 11:32:11 Citi published a research report stating that, according to the Financial Times in the UK, Apple Inc. (AAPL.US) is lobbying the US government to approve its procurement of memory chips from China癒礎s leading DRAM manufacturer CXMT, in response to surging memory costs. Although the approval outcome remains uncertain, the broker believes Apple癒礎s consideration itself represents strong recognition of CXMT癒礎s technological progress, shifting market perception of the company from merely a 癒禮domestic substitution story in China癒穡 to a 癒禮reliable fourth-largest global DRAM manufacturer.癒穡 Citi expects that, regardless of whether Apple ultimately obtains approval, the news is positive for CXMT and its supply chain, including equipment suppliers and outsourced semiconductor assembly and testing (OSAT) service providers. Among the stocks under its coverage within the CXMT supply chain, the broker prefers Hong Kong-listed ASMPT (00522.HK) and CHANG ELEC TECH (600584.SH). Citi favors ASMPT based on upside potential from demand for high-density chip bonding (TCB) and advanced packaging; a recovery in capital expenditure by OSAT players; and the industry癒礎s shift in focus toward back-end equipment. The broker expects opportunities for ASMPT in TCB and photonics to expand further. Citi maintained its Buy rating on ASMPT (00522.HK) with a target price of HKD180. The target price is based on its forecast peak valuation of 37x 2027 price-to-earnings ratio. The broker considers this peak valuation justified, mainly due to strong revenue and earnings recovery driven by AI-powered advanced packaging orders, including TCB for HBM and CoW applications, alongside continued recovery in its mainstream semiconductor and surface-mount technology (SMT) businesses. In addition, a potential future disposal of its SMT business would reinforce its positioning as a leading provider of advanced packaging solutions and could drive valuation beyond historical ranges. (ad/da)~ AASTOCKS Financial News Website: www.aastocks.com This article was automatically translated by AI, the Chinese version should be considered the authoritative version. AASTOCKS.com Limited does not guarantee its accuracy or completeness and accepts no liability for any damages or losses arising from the use of this translation. | |