Highlights

  • ACMR reports 21% YoY revenue growth in Q3FY24.
  • The company’s Q3FY24 net income rises 20.3%, supported by higher revenue and operational improvements.
  • ACM Research strengthens ALD portfolio with new Plasma-Enhanced and Thermal ALD furnace tool qualifications.

ACM Research, Inc. (NASDAQ:ACMR) designs, produces, and sells semiconductor process equipment for critical wet cleaning, electroplating, polishing, thermal processes, and wafer-level packaging in advanced manufacturing.

ACM Research has shown notable financial growth, with revenue rising from USD 107.5 million in 2019 to USD 557.7 million in 2023. Similarly, gross profit grew from USD 50.7 million to USD 276.2 million. Over this period, gross margin improved from 47.16% to 49.52%.

In the third quarter of FY24 (Q3FY24), the gross margin reached 51.4%, up from 47.8% in Q2FY24, driven by enhanced operational efficiency. Additionally, EBITDA margin increased from 19.7% to 22.8%, operating margin from 18.6% to 21.7%, and net margin from 15.5% to 19.0%.

Q3FY24 Financial Performance

In Q3FY24, ACM Research’s net sales increased by 21.0% YoY to USD 204.0 million, driven by higher sales in single-wafer cleaning, Tahoe, semi-critical cleaning equipment, and various technologies, though partly offset by lower sales in advanced packaging, services, and spares. Net income attributable to ACM Research grew by 20.3% YoY to USD 30.9 million, reflecting higher revenue despite increased operating costs. Operating cash inflows improved to USD 11.9 million, from a cash outflow of USD 17.9 million in Q3FY23, supported by favorable changes in working capital. Meanwhile, cash and cash equivalents also rose by 83.1%, reaching USD 333.5 million, due to positive cash flows from operating, investing, and financial activities.

Recent Business Update

On December 10, 2024, ACM Research strengthened its Atomic Layer Deposition (ALD) portfolio by announcing the qualification of its Ultra Fn A Plasma-Enhanced Atomic Layer Deposition (PEALD) Furnace tool. This tool has successfully achieved process qualification at a semiconductor customer in mainland China and is now entering mass production.

Company Outlook

ACM Research has revised its revenue guidance for FY2024, increasing the expected range to USD 725 million - USD 745 million, up from the previous range of USD 695 million to USD 735 million.

Top 10 shareholders

The top 10 shareholders of ACMR collectively hold approximately 36.77% of the total shares, indicating a diverse ownership structure. The largest stake is held by The Vanguard Group, Inc. and BlackRock Institutional Trust Company, N.A., with shareholding of about 6.78% and 6.12%, respectively.

Stock Information

The stock has experienced a correction of 12.65% over the past three months and has declined by around 34.11% in the last six months. Currently, it is trading near the lower band of its 52-week range, which spans from a high of USD 34.40 to a low of USD 13.87. As of December 20, 2024, the stock's closing price is USD 14.91.

Note 1: Past performance is not a reliable indicator of future performance.
Note 2: The reference date for all price data, currency, technical indicators, support, and resistance levels is December 20, 2024. The reference data in this report has been partly sourced from EODHD/Others.