ACMR Q2 2024: H2 Shipments to Exceed H1, Fueling Revenue Growth
- Robust Domestic Demand and Sequential Shipment Growth: Q&A responses emphasized that while the domestic (Mainland China) market remains the majority for shipments, the company expects higher shipments in the second half compared to the first, signaling strong current demand and an expanding order book.
- Expanding International Customer Engagements: Management discussed active initiatives and new evaluations with customers in Korea, Taiwan, the U.S., and Europe, including orders for coater/developer tools and evaluations of advanced packaging products, which broadens their market reach and growth potential.
- Innovative Product Pipeline in High-Growth Segments: The call detailed ongoing evaluations and product innovations across cleaning, plating, furnace, and advanced packaging technologies (such as horizontal plating and supercritical CO2 dry cleaning) that position the company well to capture market share in AI-driven semiconductor packaging.
- Heavy reliance on Mainland China: The Q&A revealed that the substantial majority of shipments remain within China, making the company's revenue highly concentrated in one geographic region, which could expose it to localized economic or regulatory risks.
- Regulatory uncertainties: Management acknowledged the potential impact of new export control rules. Although they plan to follow regulations and monitor developments, such uncertainties could disrupt supply chains or limit market access.
- Delayed private offering progress: The discussion on the private offering indicated an extended timeline—estimates of 6-8 months or longer—which may delay capital raising and potentially dilute shareholder value if further funding becomes necessary.
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Dividend Policy
Q: Dividend for U.S. shareholders?
A: Management clarified that dividends will not be distributed to U.S. shareholders because available cash is being reinvested to support growth initiatives. -
Export Controls
Q: Impact from potential export restrictions?
A: They noted that while new export control rules are being monitored closely, compliance is assured and the China WFE market is expected to remain stable. -
Private Offering
Q: Update on Shanghai private offering progress?
A: Management explained that the formal approval process is underway, with a closing timeframe estimated at 6–8 months before any secondary offering is executed. -
Revenue Guidance
Q: Will shipments and revenue grow?
A: They indicated that second-half shipments are expected to exceed first-half levels and revenue will improve sequentially, confirming a positive outlook. -
New Products
Q: New product announcements coming soon?
A: Management mentioned that two new panel products have already been launched and additional products will be announced once testing and evaluations mature. -
International Evals
Q: Details on international tool evaluations?
A: They reported active evaluations across the U.S., Europe, and Korea, covering diverse tools like cleaning and copper plating, underscoring expanding global interest. -
Shipment Mix
Q: What is the shipment destination split?
A: Management confirmed that the majority of shipments continue to be within Mainland China, with only a modest portion going to international markets. -
Korea Shipments
Q: Are shipments to Korea fabs underway?
A: They stated that there have been no shipments to Korea yet, though they expect initial shipments later in the second half as evaluations progress. -
Supply Chain Resilience
Q: Will supply chain be affected by regulations?
A: The team reassured investors that the supply chain remains stable with multiple suppliers already qualified, ensuring quick adjustments if needed.
Research analysts covering ACM Research.