ASML: It is expected to continue to ship non EUV lithography machines to China
1> ASML is expected to continue to ship non EUV lithography machines to China; In terms of pan forest, the company's revenue hit a record high in the quarter. The official said that the expenditure on wafer factory equipment would decline in 2023. The financial report showed that ASML's net revenue in the third quarter increased by 10% year-on-year to 5.8 billion euros, exceeding the previously expected 5.39 billion euros. The gross profit margin was 51.8%, also higher than expected. ASML expects annual sales of about 21 billion euros in 2022. In addition, the revenue of 2022 is delayed due to rapid shipment, and the revenue is expected to be about 2.2 billion euros in 2023.
2> On October 19, Asme, a large lithography machine factory, announced its financial report for the third quarter of 2022. Both sales and profits exceeded market expectations, and new net bookings also set a record. Data shows that ASML's net revenue in the third quarter increased by 10% year-on-year to 5.8 billion euros, exceeding the previous industry expectation of 5.39 billion euros ; Although the net profit decreased by 2.24% year on year to 1.701 billion euros, it was also higher than the previous expectation of 1.42 billion euros; The gross profit margin was also higher than expected, at 51.8%, which was also higher than expected. In the industry outlook, ASML expects that the net sales in the fourth quarter of 2022 will be about 6.1 billion to 6.6 billion euros, and the gross profit margin will be about 49%. As the results of the third quarter and the guidance of the fourth quarter exceeded the market expectations, plus the news that ASML confirmed that "the new regulations of the US Export Administration Regulations will have limited impact on the company's shipment in 2023", ASML's share price rose 6.42% to $424.59. Based on the median expected in the fourth quarter, it is estimated that the revenue in 2022 will be about 21.1 billion euros.
3> In addition, ASML's quarterly net bookings in the third quarter also reached a record 8.9 billion euros. In terms of performance outlook, ASML expects that the net sales in the fourth quarter of 2022 will be 6.1-66 billion euros (the market expects 6.13 billion euros), and the annual net revenue will be 21.1 billion euros, with a gross margin close to 50%.
4> The revenue generated by the fast delivery process in 2022 and deferred to 2023 is expected to be about 2.2 billion euros. In other words, the export of ASML DUV lithography machine to China will not be affected by the new US export control regulations. Recently, ASML and LAM, the world's leading semiconductor equipment companies, released their latest quarterly financial reports. As for ASML, its sales and profits in the latest quarter exceeded market expectations, and its new net bookings also set a record.
5> ASML CEO Peter Wennik said that due to a series of global macroeconomic problems, including inflation and consumer confidence, there are risks of uncertainty and recession in the market; ASML's new orders in the third quarter reached a record high of 8.9 billion euros. Of which, EUR 3.8 billion came from EUV system orders, including High NA system orders. Although we began to see different demand dynamics in each market segment, the overall demand for our system was still strong.
6> At the same time, Wennik also disclosed that the company's preliminary assessment showed that the new regulations of the US export administration regulations had limited direct impact on the company's overall shipment plan in 2023. "We can continue to ship non EUV lithography tools from Europe to China." The company's preliminary assessment shows that the newly issued export control regulations of the United States have not revised the rules for ASML to ship lithography equipment from the Netherlands, and we expect that their direct impact on the overall shipment plan of ASML in 2023 will be limited. This also indicates that Asme may continue to ship non EUV lithography machines to China as usual.
