High-Quality Q3 Earnings Reveal Acm Research (Shanghai)'s (688082.SH) Growth Formula for the Next Breakout

Stock News11-04

After a decade, the Shanghai Composite Index is nearing the 4,000-point milestone. This rally is primarily driven by "hard tech," fueled by the global AI wave and China's semiconductor localization push, reflecting synchronized transformation between capital markets and the real economy. As market valuations rise, high-quality assets like Acm Research (Shanghai), Inc. (688082.SH)—a platform-based semiconductor equipment leader—are being revalued.

By October 30, Acm Research (Shanghai)'s stock surged 95.87% YTD, underpinned by robust growth showcased in its Q3 2025 report. On October 29, the company posted a record quarterly net profit of RMB 570 million, up 81.04% YoY. Analysts, including Everbright Securities, maintain a "Buy" rating, citing its product upgrades and localization benefits.

Key Q3 Highlights: 1. **Revenue Growth**: Revenue hit a quarterly high, driven by strong domestic demand and efficient order execution. 2. **Profitability**: Net profit rose 81.04% YoY, with gross margin up 2.39 ppts to 47.48%, reflecting premium product mix and operational efficiency. 3. **R&D Investment**: R&D spending grew 46.16% YoY to RMB 324 million, accounting for 17.22% of revenue. 4. **Strengthened Balance Sheet**: A RMB 4.44 billion private placement reduced debt-to-asset ratio to 27.08% (vs. 36.81% in 2024). 5. **Order Backlog**: Orders reached RMB 9.07 billion, up 34.1% YoY, securing future growth.

**Industry Tailwinds**: Post-2023 downturn, global semiconductor equipment sales are rebounding, projected to grow 7.4% to $125.5 billion in 2025 (SEMI). China, the largest market, offers structural growth as localization gaps persist in lithography, ion implantation, etc.

**Strategic Positioning**: - **Product Diversification**: From cleaning/plating dominance (8% global share each), Acm expanded into furnace, track, PECVD, and polishing tools, addressing a $20 billion TAM. - **Capacity Expansion**: Its Lingang facility (near full capacity) targets RMB 20 billion annual output post-2026. - **Funding Boost**: The RMB 4.48 billion raised will accelerate R&D (e.g., next-gen equipment) and global expansion.

**Outlook**: With cyclical recovery, policy support, and execution strength, Acm Research (Shanghai) is poised to lead China's semiconductor equipment rise, potentially joining the RMB 200 billion market cap club.

Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.

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