ASML had a strong quarter and managed to deliver an all-around beat. The gross margin and net income were strong as a result of a good performance of its lithography business. Five EUV customers have placed high NA orders and High NA plays a vital role both in the memory business and high-end logic. Deep UV business continues to be robust. In the quarter, two new models have been introduced, the advanced dry systems, NXT:870, and the new ArF immersion systems, NXT:2100. Installed base business was a key driver of growth in the quarter. Logic and memory also saw decent growth. A positive sign is that its R&D more than doubled which means the management is investing in innovation. There are issues with export controls and geopolitical developments that ASML is facing but the company is looking beyond the short term despite uncertainties right now. It is investing in its EUV factory, its TWINSCAN Factory, and its production capacity as well. We provide the stock of ASML with a ‘Hold’ rating with a revision in the target price.
Our Report Structure:
⦁ Company Overview
⦁ Investment Thesis
⦁ Key Drivers
⦁ Historical Quarterly Statement Analysis – Income Statement & Cash Flows
⦁ Historical Quarterly Balance Sheet Analysis
⦁ Historical Annual Financial Statement Analysis
⦁ Analysis Of Key Financial Ratios
⦁ Financial Forecasts For 3 Years
⦁ Forecasting The Capital Structure & Net Debt
⦁ Discounted Cash Flow Valuation
⦁ Trading Multiples
⦁ Key Risks
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