Acm Research (Shanghai), Inc. (688082.SH) recently published its semi-annual report for 2026. During the reporting period, the company achieved operating revenue of 3.718 billion yuan, an increase of 13.87% year-on-year, while net profit attributable to the parent reached 989 million yuan, up 42.14% from the same period last year. The company's stock surged over 205% in the second quarter and gained 145% in the first half of the year, pushing its total market value to surpass 220 billion yuan at one point. Clearly, the stock price outpaced the company's earnings growth.
More importantly, behind the seemingly impressive net profit growth, the company's non-recurring net profit attributable to the parent fell by 15.31% year-on-year in the first half of the year. The high growth in net profit was primarily driven by changes in the fair value of financial assets. The two stocks the company holds—Hua Hong Semiconductor Limited (688347.SH) and Shanghai Hejing Co., Ltd. (688584.SH)—experienced significant price increases in the second quarter, contributing over 470 million yuan in paper gains. The reality of a declining non-recurring net profit, exchange losses eroding profits, and stock investment gains supporting nearly half of the net profit reveals the challenges Acm Research (Shanghai), Inc. faces in its core business profitability. Although the company saw a clear sequential improvement in revenue and non-recurring net profit in the second quarter, market expectations for its performance have risen sharply following the stock's substantial second-quarter gains. Whether the company can convert its orders into tangible profit growth will be key to sustaining its billion-level valuation. As of the latest closing price, Acm Research (Shanghai), Inc. shares traded at 288 yuan, giving a total market value of 139 billion yuan, a decline of approximately 35.5% from its historical high.
During the first half of this year, Acm Research (Shanghai), Inc.'s performance exhibited a clear characteristic of revenue growth without matching profit growth. The company's operating revenue maintained double-digit growth, but non-recurring net profit saw a double-digit decline. The growth in net profit attributable to the parent was primarily driven by non-recurring gains and losses. The semi-annual report shows that total non-recurring gains and losses for Acm Research (Shanghai), Inc. reached 418 million yuan, of which gains from changes in fair value and disposal of financial assets and liabilities held by non-financial enterprises amounted to 473 million yuan.
Specifically, two stocks in the semiconductor supply chain held by Acm Research (Shanghai), Inc. were the main sources of these fair value changes. The initial investment cost in Hua Hong Semiconductor Limited was approximately 100 million yuan, with a beginning book value of 207 million yuan. The current period's fair value change gain was as high as 439 million yuan, increasing the ending book value to 647 million yuan. Meanwhile, Acm Research (Shanghai), Inc.'s initial investment cost in Shanghai Hejing Co., Ltd. was about 20 million yuan, with a beginning book value of 42.2 million yuan. The current period's fair value change gain was approximately 26.95 million yuan, raising the ending book value to 69.15 million yuan. Together, these two stocks contributed about 466 million yuan in fair value change gains, accounting for nearly half of the net profit for the period. If this investment paper gain is excluded, the core business profitability of Acm Research (Shanghai), Inc. is actually on a downward trend. The company's non-recurring net profit for the first half was 571 million yuan, down 15.31% year-on-year; non-recurring basic earnings per share were 1.19 yuan, down 22.22%; and non-recurring weighted average return on equity was 4.08%, a decrease of 4.27 percentage points.
The core business of Acm Research (Shanghai), Inc. involves the research, development, production, and sale of semiconductor equipment. The company is building a platform-based layout of semiconductor process equipment, including cleaning equipment, electroplating equipment, vertical furnace tube series equipment, front-end track coating and developing equipment, and PECVD equipment. The decline in core business profitability during the reporting period is due to several factors. First, the growth rate of operating costs significantly outpaced revenue growth. Operating costs for the first half reached 1.976 billion yuan, up 22.81% year-on-year, higher than the 13.87% revenue growth, squeezing profit margins. The gross profit margin for the core business was 45.61%, still at a relatively high level overall, but cost pressures cannot be ignored. Second, R&D investment continued to increase. The company's R&D expenses for the first half were 466 million yuan, up 11.94% year-on-year, with R&D investment accounting for 17.82% of operating revenue, an increase of 1.15 percentage points from the previous year. Additionally, selling expenses were 312 million yuan, up 16.44% year-on-year, also outpacing revenue growth.
However, based on single-quarter data, Acm Research (Shanghai), Inc.'s performance in the second quarter showed a clear sequential improvement. According to disclosures, the company achieved operating revenue of 2.242 billion yuan in the second quarter, a sequential increase of 51.83%; net profit attributable to the parent of 885 million yuan, a sequential increase of 748.28%; and non-recurring net profit of 465 million yuan, a sequential increase of 338.37%. The improvement in second-quarter non-recurring net profit to some extent reflects quarterly fluctuations in the company's core business. An uneven pace of equipment acceptance and revenue recognition is a common characteristic of the semiconductor equipment industry.
In addition to the pressure on core business profitability, a significant increase in financial expenses for Acm Research (Shanghai), Inc. in the first half is also noteworthy. During the reporting period, the company's financial expenses reached 126 million yuan, compared to -22.71 million yuan in the same period last year, a substantial change. The surge in financial expenses was primarily due to exchange losses. Exchange losses in the financial expenses for the period amounted to 146 million yuan. Since most of the company's product sales are denominated in US dollars, some raw material and component purchases are in US dollars and South Korean won, while employee salaries and other costs are in renminbi, fluctuations in the renminbi exchange rate directly impacted the company's operating results.
From the balance sheet, the scale and structure of Acm Research (Shanghai), Inc.'s ending inventory and accounts receivable provide clues about its ability to release performance in the second half of the year. Regarding inventory, as of the end of the reporting period, the book value of the company's inventory was 5.076 billion yuan, a 5.27% increase from the beginning of the period's 4.822 billion yuan, accounting for 29.85% of current assets. In terms of inventory structure, the book value of raw materials (hereinafter) was 2.767 billion yuan, the highest proportion, up 13.0% from 2.449 billion yuan at the beginning of the period; work in progress was 577 million yuan, up 33.9% from 431 million yuan; finished goods were 379 million yuan, slightly down from 394 million yuan; and goods in transit were 1.354 billion yuan, down 12.5% from 1.548 billion yuan at the beginning of the period. Notably, the combined finished goods and goods in transit for Acm Research (Shanghai), Inc. totaled 1.733 billion yuan, accounting for 34.13% of the inventory book value. For semiconductor equipment companies, goods in transit typically represent equipment that has been shipped but not yet accepted by customers, and once accepted, can be recognized as revenue. Although the scale of goods in transit has decreased from the beginning of the period, it remains at a high level. Combined with the continuous growth in raw materials and work in progress, this suggests the company has a relatively full order book. However, the risk of inventory impairment also needs attention. The company's ending inventory impairment provision has reached 221 million yuan, including 191 million yuan for raw materials and 30.42 million yuan for finished goods.
In the second quarter of this year, Acm Research (Shanghai), Inc.'s stock performance experienced its most remarkable period since its listing five years ago. Driven by expectations for the listing of Changxin Technology (688825.SH) and the accelerated increase in domestic equipment market share due to capacity expansion, the stock price of Acm Research (Shanghai), Inc. started a main upward trend from around 156 yuan in early May, rising 48% that month. It accelerated in June, surging 88.61% for the month and hitting an all-time high of 458.9 yuan, with a total market value briefly exceeding 220 billion yuan. The stock accumulated a gain of over 205% in the second quarter, significantly outperforming indices like the CSI 300 and the STAR 50, drawing considerable market attention.
From the changes in the top ten circulating shareholders, institutional investors showed a divergent attitude towards Acm Research (Shanghai), Inc. in the second quarter, with some institutions increasing and others decreasing their holdings. The long-term allocation value of the semiconductor equipment sector is still recognized, but short-term high valuations also prompted some funds to take profits. The company's second-largest shareholder, Shanghai Pudong New Area Emerging Industry Investment Co., Ltd., reduced its stake in the second quarter, with its shareholding ratio falling to 2.69%. Northbound capital also reduced its holdings, with the shareholding ratio dropping to 1.05%. In terms of funds, the Orient AI Theme Mixed Securities Investment Fund bucked the trend by adding 784,400 shares, becoming the third-largest circulating shareholder. Index funds showed a mixed picture: the ChinaAMC SSE STAR Market 50 ETF, the Guotai CSI Semiconductor Materials and Equipment ETF, and the Harvest SSE STAR Market Chip ETF all increased their holdings, while the ChinaAMC SSE STAR Market 50 ETF and the E Fund SSE STAR Market 50 ETF reduced theirs. Additionally, the Yinhua Integrated Circuit Hybrid Securities Investment Fund newly entered the top ten circulating shareholders in the second quarter, holding a 0.43% stake.
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