Company Performance - ACM Research, Inc. (ACMR) stock decreased by 3.06% to $24.42, underperforming the S&P 500's daily loss of 0.22% [1] - Over the past month, the company's stock has increased by 11.76%, outperforming the Computer and Technology sector's gain of 2.98% and the S&P 500's gain of 0.45% [1] Earnings Projections - The upcoming EPS for ACM Research is projected at $0.42, indicating a 23.64% decline compared to the same quarter last year [2] - Revenue is estimated to be $221.04 million, reflecting a 9.17% increase from the prior-year quarter [2] Full Year Estimates - For the full year, earnings are projected at $2 per share, representing an 11.5% decrease from the previous year, while revenue is expected to reach $912.29 million, a 16.64% increase [3] - Recent changes in analyst estimates are crucial as they indicate near-term business trends and analyst sentiment regarding profitability [3] Valuation Metrics - ACM Research is currently trading at a Forward P/E ratio of 12.6, which aligns with the industry average Forward P/E of 12.6 [6] - The Semiconductor Equipment - Material Services industry, part of the Computer and Technology sector, holds a Zacks Industry Rank of 236, placing it in the bottom 5% of over 250 industries [6]

Group 1 - ACM Research, Inc. (ACMR) stock decreased by 5.27% to $24.37, underperforming the S&P 500's daily loss of 1.13% [1] - Over the past month, ACMR's stock has increased by 5.73%, which is lower than the Computer and Technology sector's gain of 7.36% and higher than the S&P 500's gain of 3.55% [1] Group 2 - The upcoming earnings disclosure for ACMR is anticipated, with a forecasted EPS of $0.42, reflecting a 23.64% decline from the same quarter last year [2] - The Zacks Consensus Estimate projects revenue of $221.04 million, indicating a 9.17% increase from the previous year [2] Group 3 - For the entire fiscal year, earnings are projected at $2 per share, representing an 11.5% decrease, while revenue is expected to be $912.29 million, showing a 16.64% increase from the prior year [3] - Recent analyst estimate revisions suggest a positive outlook for ACMR's business [3] Group 4 - The Zacks Rank system, which evaluates estimate changes, indicates ACMR currently holds a Zacks Rank of 4 (Sell) [5] - The average Forward P/E ratio for ACMR is 12.86, aligning with the industry average, suggesting no significant deviation in valuation [6] Group 5 - The Semiconductor Equipment - Material Services industry, which includes ACMR, ranks in the bottom 5% of all industries according to the Zacks Industry Rank [6][7]

Core Viewpoint - ACM Research, Inc. is actively participating in the 15th Annual ROTH London Conference, indicating its commitment to engaging with institutional investors and showcasing its semiconductor processing solutions [1][2]. Company Overview - ACM Research, Inc. specializes in developing, manufacturing, and selling semiconductor process equipment, which includes cleaning, electroplating, stress-free polishing, vertical furnace processes, track, PECVD, and wafer- and panel-level packaging tools [3]. - The company aims to provide customized, high-performance, and cost-effective process solutions that enhance productivity and product yield for semiconductor manufacturers [3].

Core Insights - ACM Research, Inc. has released its 2024 Environmental, Social, and Governance (ESG) report, now available in English, highlighting its commitment to sustainability in semiconductor manufacturing [1][2] Company Initiatives - The company emphasizes its dedication to improved ESG performance through innovations like the Tahoe hybrid cleaning system, which significantly reduces sulfuric acid usage, supporting a circular economy [2] - ACM completed its inaugural CDP Climate submission in 2024, enhancing climate risk disclosure and environmental transparency [3] ESG Metrics and Goals - ACM has established a carbon reduction baseline for future greenhouse gas emissions targets [7] - The company aims for a 75% pure water purification rate by 2030 [7] - In 2024, ACM recycled 2,800 kg of plastic crates and 1,200 kg of wooden crates as part of its circular economy initiatives [7] - An ESG risk screening system for suppliers is under development, with a planned launch in 2025 [7] Certifications and Achievements - ACM has maintained ISO 14001 and ISO 9001 certifications across key facilities [7] - The Ultra C Tahoe hybrid cleaning tool offers enhanced cleaning performance with up to 75% reduction in chemical consumption, leading to estimated cost savings of up to $500,000 per year from sulfuric acid alone [7] - The Frame Wafer cleaning tool achieves nearly 100% solvent recovery and filtration efficiency, significantly reducing chemical consumption during production [7]

Core Insights - ACM Research, Inc. has released its 2024 Environmental, Social, and Governance (ESG) report, highlighting its commitment to sustainability in semiconductor manufacturing [1][2] Group 1: ESG Report Highlights - The English version of the 2024 ESG report is now available on ACM's website, following the original Chinese version published in February 2025 [1] - ACM has established a carbon reduction baseline for future greenhouse gas (GHG) emissions targets [7] - The company aims to achieve a 75% pure water purification rate by 2030 [7] - In 2024, ACM recycled 2,800 kg of plastic crates and 1,200 kg of wooden crates as part of its circular economy initiatives [7] - An ESG risk screening system for suppliers is under development, with a planned launch in 2025 [7] Group 2: Innovations and Cost Savings - ACM's Ultra C Tahoe hybrid cleaning tool reduces chemical consumption by up to 75%, resulting in estimated cost savings of up to $500,000 per year from sulfuric acid alone [7] - The Frame Wafer cleaning tool achieves nearly 100% solvent recovery and filtration efficiency, significantly reducing chemical consumption during production [7] Group 3: Certifications and Climate Initiatives - ACM has maintained ISO 14001 and ISO 9001 certifications across key facilities [7] - The company completed its inaugural CDP Climate submission in 2024, enhancing climate risk disclosure and environmental transparency [3]

Core Insights - Demand for advanced chipmaking equipment is rapidly increasing due to advancements in semiconductors for AI, electric vehicles, and high-performance computing, leading investors to focus on companies like ACM Research (ACMR) and Applied Materials (AMAT) [1] Company Overview - Applied Materials has a market capitalization exceeding $134 billion and is a leader in materials engineering, focusing on innovations such as gate-all-around transistors and advanced memory [2] - ACM Research, with a market cap of $1.37 billion, is expanding in wafer cleaning and advanced packaging, particularly in Asia, while also scaling globally [2] Stock Performance - In 2025, ACM Research's shares have increased by 60.8%, significantly outperforming Applied Materials' 2.1% gain, reflecting ACMR's strong revenue momentum and growing influence in the Chinese market [3] - AMAT's slower stock performance is attributed to U.S. export controls affecting its China business, despite its leadership in advanced technologies [3] Strategic Positioning - ACM Research is strategically positioned in the Chinese semiconductor market, benefiting from local manufacturing and customer relationships amid China's push for self-reliance in chipmaking [5] - ACMR's gross margin for Q1 2025 was 48.2%, exceeding its long-term target range of 42% to 48%, supported by a favorable product mix and disciplined cost controls [6] Financial Health - ACMR's net cash increased to $271 million in Q1 2025, up from $259 million at the end of 2024, with positive operating cash flow of $5.3 million compared to a negative $9 million a year earlier [7] - Applied Materials reported an adjusted EPS of $2.39 in Q2 2025, exceeding estimates, with a gross margin of 49.2%, the highest in over two decades [11] Market Challenges - The Trump administration's 25% semiconductor tariffs pose significant challenges for both AMAT and ACMR, potentially inflating costs and disrupting supply chains [13] Valuation Comparison - ACM Research is trading at a forward P/E of 17.09X, below its 5-year median of 21.70X, indicating it is attractively valued compared to Applied Materials, which is trading at a forward P/S of 17.09X, aligning with its historical average [14] Price Targets - Analysts project an average price target of $199.33 for Applied Materials, suggesting a 20.1% upside, while ACM Research has an average price target of $34.43, implying a 45.45% upside [15][19] Investment Outlook - ACMR is gaining momentum with strong margins and relevance in China's chip self-reliance, while AMAT benefits from AI-driven demand and shareholder returns, though its slower growth and higher valuation limit near-term upside [21]

Group 1 - The core viewpoint is that ACM Research, Inc. (NASDAQ: ACMR) is seen as a promising investment due to its growth potential in the wafer cleaning segment, which is crucial for the semiconductor supply chain [1] - The company is emerging as a significant player in its industry, indicating a positive outlook for future performance [1] Group 2 - The analysis is based on thorough research and analysis of financial statements, market trends, and upcoming events that may impact the company or industry [1]

Financial Performance - Revenue for Q1 2025 was $172.347 million, a 13.2% increase from $152.191 million in Q1 2024[21] - Gross profit for Q1 2025 was $82.550 million, compared to $79.121 million in Q1 2024, reflecting a gross margin improvement[21] - Net income attributable to ACM Research, Inc. for Q1 2025 was $20.380 million, up 16.4% from $17.433 million in Q1 2024[21] - Net income for Q1 2025 was $25,013,000, an increase of 13.7% compared to $22,092,000 in Q1 2024[26] - The company reported a basic net income per share of $0.32 for Q1 2025, up from $0.28 in Q1 2024[21] - Comprehensive income attributable to ACM Research, Inc. was $21.806 million for Q1 2025, compared to $11.857 million in Q1 2024[21] - Basic net income per share increased to $0.32 for the three months ended March 31, 2025, up from $0.28 in the same period of 2024, reflecting a growth of 14.3%[61] Assets and Liabilities - Total current assets increased to $1.548 billion as of March 31, 2025, from $1.483 billion as of December 31, 2024[17] - Total assets reached $1.934 billion as of March 31, 2025, compared to $1.856 billion at the end of 2024[17] - Total liabilities were $778.415 million as of March 31, 2025, up from $759.815 million at the end of 2024[17] - Stockholders' equity increased to $949.146 million as of March 31, 2025, from $904.625 million at the end of 2024[18] Cash Flow and Investments - Cash provided by operating activities was $5,282,000 in Q1 2025, compared to cash used of $9,649,000 in Q1 2024[26] - Total cash, cash equivalents, and restricted cash at the end of Q1 2025 was $467,826,000, up from $212,113,000 at the end of Q1 2024[27] - The fair value of cash and cash equivalents as of March 31, 2025, was $76,510,000, an increase from $50,967,000 as of December 31, 2024[58] - The company purchased property and equipment totaling $16,726,000 in Q1 2025, compared to $25,419,000 in Q1 2024[27] - Proceeds from the exercise of stock options amounted to $22,729,000 in Q1 2025, significantly higher than $4,799,000 in Q1 2024[27] Research and Development - Research and development expenses for Q1 2025 were $27.503 million, compared to $23.918 million in Q1 2024, indicating a focus on innovation[21] Inventory and Receivables - Total inventories, net, increased to $609,567 thousand as of March 31, 2025, from $597,984 thousand as of December 31, 2024[76] - The allowance for credit losses decreased slightly to $18,338 thousand as of March 31, 2025, from $18,347 thousand at the end of 2024[75] - Accounts receivable as of March 31, 2025, totaled $387,849 thousand, slightly up from $387,045 thousand as of December 31, 2024[75] - Revenue recognized from contract liabilities at the beginning of the year was $62,119 thousand for the three months ended March 31, 2025, compared to $29,188 thousand for the same period in 2024, representing a 112.5% increase[74] Borrowings and Interest - Total short-term borrowings decreased to $24,951 thousand as of March 31, 2025, from $32,814 thousand as of December 31, 2024[82] - As of March 31, 2025, total long-term borrowings amounted to $134,540 million, an increase of 27.5% from $105,525 million as of December 31, 2024[90] - Interest expense related to long-term borrowings for the three months ended March 31, 2025, was $1,365 million, compared to $570 million for the same period in 2024, reflecting a 139.5% increase[96] Tax and Compliance - The income tax expense for the three months ended March 31, 2025, was $2,153,000, a decrease from $4,369,000 in the same period of 2024, reflecting a reduction of approximately 51%[128] - The company is currently evaluating the provisions of ASU No. 2023-09, which requires additional disclosures on income tax rates and payments, effective for annual periods beginning after December 15, 2024[69] Stock and Equity - The company recognized a provision for inventory of $4,523 thousand in cost of revenue for the three months ended March 31, 2025, compared to $1,025 thousand in the same period of 2024[77] - The company issued option grants for 32,000 shares to employees and board members during the three months ended March 31, 2025[118] - The total carrying amount of long-term loans was $202,475 million as of March 31, 2025, compared to an estimated fair value of $189,779 million[95] Other Financial Metrics - The company had total unrecognized tax benefits of $16,774,000 as of March 31, 2025, with no expected reversal in the next 12 months[130] - The company’s effective interest in its subsidiaries remained stable at approximately 81.1% as of March 31, 2025[30] - The company invested $16,737 million in Ninebell Co., Ltd., increasing its ownership to 36.2%[102]

Financial Data and Key Metrics Changes - Revenue for Q1 2025 was $172 million, an increase of 13% compared to Q1 2024 [13][25] - Shipments were $157 million, down 36% year-over-year, attributed to strong demand in Q1 2024 [13][26] - Gross margin was 48.2%, exceeding the target range of 42% to 48% [14][27] - Net cash increased to $271 million from $259 million at the end of 2024 [14][29] Business Line Data and Key Metrics Changes - Revenue from single wafer cleaning tools grew 18%, representing 75% of total revenue [15] - Revenue from ECP, furnace, and other technologies grew 7%, accounting for 16% of total revenue [16] - Revenue from advanced packaging, excluding ECP, was down 10.5%, representing 9% of total revenue [19] Market Data and Key Metrics Changes - In China, the company estimates its market share in wafer cleaning and plating exceeded 25%, translating to over 9% globally for each category [7] - The company is expanding its business into the global market, with investments in an Oregon facility to reduce tariff uncertainties [11][12] Company Strategy and Development Direction - The company aims to develop world-class tools and establish R&D and production in key countries to support major semiconductor customers [9] - The focus remains on delivering differentiated enabling technology to solve critical process challenges for global customers [24] - The long-term revenue target is set at $3 billion, with equal contributions expected from China and the global market [21] Management's Comments on Operating Environment and Future Outlook - Management acknowledged the shifting global trade environment and its complexities, emphasizing the importance of their established strategy [9] - The company maintains a revenue outlook for 2025 in the range of $850 million to $950 million, implying a 15% year-over-year growth at the midpoint [24] - Management expressed confidence in continued market share growth despite a plateau in the WFE market in China [44][46] Other Important Information - The Oregon facility is being developed to support global customers and is expected to include a clean room and demo lab [23] - The Lingang production and R&D center is nearing completion, with a potential annual production capacity of $3 billion [22] Q&A Session Summary Question: Shipment figures and full-year shipment growth expectations - Management expects shipments to grow in 2025 but acknowledges that the growth rate may not exceed last year's high levels [35][36] Question: Impact of tariffs on profitability - Management believes the impact of tariffs is minimized as they are sourcing more parts locally and from third countries [42] Question: Thoughts on 2026 growth and market conditions - Management indicated that while the WFE market may plateau, they expect to continue gaining market share through innovation and new products [44][46] Question: Domestic competition and potential consolidation in the semiconductor sector - Management expressed confidence in their technology and innovation, stating that local competitors cannot easily replicate their products [52][55]

Financial Data and Key Metrics Changes - Revenue for Q1 2025 was $172 million, up 13% year-over-year [13][27] - Shipments were $157 million, down 36% compared to Q1 2024 [13][27] - Gross margin was 48.2%, exceeding the targeted range of 42% to 48% [14][28] - Net cash increased to $271 million from $259 million at the end of 2024 [14][31] Business Line Data and Key Metrics Changes - Revenue from single wafer cleaning tools grew 18%, representing 75% of total revenue [15] - Revenue for ECP, furnace, and other technologies grew 7%, accounting for 16% of total revenue [16] - Revenue from advanced packaging, excluding ECP, was down 10.5%, representing 9% of revenue [19] Market Data and Key Metrics Changes - In China, the company estimates its market share in wafer cleaning and plating exceeded 25%, translating to over 9% globally for each category [7] - The company is expanding its business into the global market, particularly in the U.S. [11] Company Strategy and Development Direction - The company aims to develop world-class tools and establish R&D and production in key countries [9] - Investment in the Oregon facility is intended to reduce tariff uncertainty and establish production close to customers [12] - The long-term revenue target is $3 billion, with equal contributions expected from China and the global market [21] Management's Comments on Operating Environment and Future Outlook - The management acknowledged a shifting global trade environment with new tariffs and evolving policies [9] - The company maintains its 2025 revenue outlook in the range of $850 million to $950 million, implying 15% year-over-year growth at the midpoint [24] - Management expressed confidence in continued market share growth despite a plateau in the WFE market in China [47][50] Other Important Information - The Lingang production and R&D center is nearing completion, with a potential annual production capacity of $3 billion [22] - The Oregon facility is being developed to support global customers with a demo lab and clean room [23] Q&A Session Summary Question: Shipment figures and full-year growth expectations - Management expects shipments to grow in 2025 but acknowledges that the growth rate may not exceed last year's high levels [37][38] Question: Impact of tariffs on profitability - Management believes the impact of tariffs is minimized as they are sourcing more parts locally and from third-party countries [44] Question: Thoughts on 2026 growth and market conditions - Management indicated that while the WFE market may plateau, they expect to continue gaining market share through innovation and new products [47][50] Question: Domestic competition and potential consolidation in the semiconductor sector - Management expressed confidence in their technology and innovation, stating that local competitors cannot easily replicate their products [56][59]