Date
12 December 2017
ASM Pacific chief executive Lee Wai-kwong  said the dividend payout ratio had to be cut because of the company's larger business scale. Photo: HKEJ
ASM Pacific chief executive Lee Wai-kwong said the dividend payout ratio had to be cut because of the company's larger business scale. Photo: HKEJ

ASM Pacific sees intelligent vehicle apps as growth driver

ASM Pacific Technology Ltd. (00522.HK) said applications related to intelligent vehicles will become a major profit booster for the company, the Hong Kong Economic Journal reported Friday.

Growing smartphone and computer tablet sales will also boost demand for semiconductors, chief executive Lee Wai-kwong said.

The assembly and packaging equipment supplier for the semiconductor and LED industries saw its net profit up 1.86 times to HK$1.6 billion last year.

Sales and new orders surged to record levels, while overall gross profit margin widened 6.2 percentage points to 35.5 percent amid signs of recovery in Europe’s economy.

The company, however, cut the dividend payout ratio to 52.7 percent from 60.9 percent in 2013, citing the company’s larger business scale and growing expenses.

It is unlikely that the payout ratio will return to 80-90 percent, Lee said.

Lee expects new orders this quarter will rise at a double-digit pace with sales up a single-digit rate from a year ago.

Translation by Vey Wong

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