On August 3, semiconductor equipment leader Advanced Micro-Fabrication Equipment Inc. China released its semi-annual performance forecast for 2026, projecting total revenue of approximately 6.687 billion yuan, a 34.89% year-on-year increase, with net profit attributable to parent company expected between 2.7 billion and 2.9 billion yuan, representing a growth of 282.48% to 310.81%.
However, the substantial profit surge is not entirely driven by core operations. The announcement indicated that the company's equity investments measured at fair value through profit or loss contributed approximately 1.982 billion yuan in fair value changes and investment income during the first half, an increase of about 1.8 billion yuan year-on-year, making it a key factor behind the net profit leap.
Excluding non-recurring items, the company's core business profitability also maintained robust growth. The projected net profit after deducting non-recurring gains and losses for the first half stands between 1 billion and 1.2 billion yuan, up 85.61% to 122.73% year-on-year, reflecting strong momentum in core segments like etching and thin-film equipment.
Equity Investments Boost Profits, Core Business Profitability Continues to Improve
Analyzing the profit structure, this growth stems from two main sources. On one hand, a 34.89% revenue increase drove a gross profit rise of about 682 million yuan. On the other hand, equity investments yielded approximately 1.982 billion yuan in fair value and investment income, becoming a significant profit driver.
In comparison, while the growth rate of net profit excluding non-recurring items is lower than the overall net profit, it still maintains a high 85% to 123% increase, indicating ongoing improvement in core business profitability.
R&D Spending Rises, New Products Enter Intensive Validation Phase
Alongside profit growth, the company maintained high R&D investment. In the first half of 2026, R&D spending reached about 2.042 billion yuan, up 36.89% year-on-year, accounting for 30.52% of total revenue. Of this, around 1.310 billion yuan was expensed in the period, a 17.31% increase. The difference between total R&D spending and expensed R&D costs stems from capitalized R&D and government subsidies.
To date, the company has deployed products across etching, thin-film, CMP, and inspection equipment, forming 54 types of high-end equipment, with over 8,800 reaction chambers in mass production across more than 220 production lines worldwide.
The company stated that its ongoing projects cover six major equipment categories and over 20 new products, with several already in customer validation. Some key performance indicators have reached internationally advanced levels.
Platform Strategy Advances, New Product Iteration Accelerates
Beyond earnings growth, the company's product development progress has drawn market attention. The announcement revealed that the company has continuously improved R&D efficiency, shortening new equipment development cycles from the typical three to five years to under two years. As the R&D platform matures, the company plans to launch more new products in the coming years, further enhancing its semiconductor equipment platform.
From a competitive perspective, Advanced Micro-Fabrication Equipment Inc. China has expanded from a single etching equipment focus to multiple product areas, including thin-film, CMP, and inspection, with a continuously improving platform layout. Meanwhile, the cumulative installed base of over 8,800 reaction chambers has provided extensive customer application experience for subsequent product iteration and process optimization.
For the market, equity investment gains drove the significant profit increase in the first half of the year. However, the more notable aspect is the company's core semiconductor equipment business maintaining rapid growth, with high R&D investment and sustained progress in new product development and validation, laying a solid foundation for future earnings growth.
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