Sign in

    ACM Research (ACMR)

    ACMR Q1 2025: Sees Q2 Shipment Growth Driving Full-Year Upside

    Reported on Jun 24, 2025 (Before Market Open)
    Pre-Earnings Price$20.03Last close (May 7, 2025)
    Post-Earnings Price$19.96Open (May 8, 2025)
    Price Change
    $-0.07(-0.35%)
    • Positive shipment growth outlook: Management expects year-over-year shipment growth in Q2 and anticipates full-year shipments to exceed last year's high levels, underscoring demand resilience despite a lumpy quarterly pattern.
    • Innovative product pipeline with strong IP protection: The executives highlighted breakthrough products—such as high-temperature SPM, advanced furnace tools, and panel-level packaging solutions—and emphasized robust IP protection that supports market leadership.
    • Favorable positioning amid industry consolidation: With a full, diversified cleaning and plating product portfolio, ACM Research is well-equipped to capitalize on potential market consolidation in China, strengthening its competitive edge with organic growth.
    • Shipment Weakness: Management acknowledged that shipments in Q1 were significantly lower compared to the high levels in Q1 2024 and indicated that even though full-year shipment growth is expected, shipment numbers are likely to be below last year’s substantially high levels, which may raise concerns about demand momentum and operational efficiency.
    • Tariff and Supply Chain Risks: During the Q&A, management downplayed tariff impacts, but the discussion leaves room for uncertainty regarding potential future trade policy changes and supply chain disruptions, which could adversely affect profitability.
    • Competitive Pressures and Market Consolidation: Discussions around intensifying domestic competition and anticipated consolidation in the Chinese semiconductor equipment sector suggest that ACM could face margin compression and competitive challenges that might impact its market share.
    1. Shipment Outlook
      Q: Will full-year shipments exceed last year?
      A: Management expects shipment growth over last year despite a high previous baseline, with a rebound already apparent in Q2, although shipment growth may be lower than revenue increases.

    2. Tariff Impact
      Q: Are tariffs affecting import costs?
      A: They are mitigating tariff issues by relying on local sourcing and alternative supply channels, ensuring minimal impact on overall costs.

    3. Domestic Competition
      Q: How strong is domestic competition?
      A: The team emphasizes their technology leadership and robust IP protection, noting expected industry consolidation but maintaining confidence in organic growth without mergers.

    Research analysts covering ACM Research.