Morgan Stanley has issued a report predicting that ASMPT (00522) may report a loss for the third quarter due to one-time restructuring costs. However, the firm encourages investors to focus on the company's long-term growth drivers, including the expansion of CoWoS-L capacity, the development of high-frequency memory in China, and advances in hybrid bonding. Morgan Stanley highlighted a recovery in mainstream semiconductor demand and ongoing growth in the advanced packaging market. They estimate that the order-to-ship ratio for ASMPT in the third quarter will remain above 1x, maintaining an "Overweight" rating, with the target price raised from HKD 80 to HKD 100. The firm has also increased its earnings per share forecasts for 2026 and 2027 by 10% and 23% respectively, while lowering the full-year earnings estimate for this year by 45%. According to Morgan Stanley, the revenue guidance midpoint for ASMPT in Q3 is USD 475 million, reflecting an 11% year-on-year growth. They currently predict that the company’s revenue will meet this guidance but expect a one-time restructuring cost of approximately RMB 360 million, resulting in a net loss of about RMB 69 million. For the fourth quarter, the firm forecasts revenue to reach RMB 3.646 billion, a year-on-year increase of 7%, and anticipates a quarterly turnaround with a net profit of approximately RMB 126 million, primarily driven by revenue growth in semiconductor solutions from advanced packaging.