China Microelectronics Corporation (AMEC): High revenue growth in etching equipment continues to benefit from FAB’s expansion of production
The company releases its third quarter 2023 report. In the first three quarters of 2023, the company achieved operating income of 4.041 billion yuan, a year-on-year increase of 32.80%; net profit attributable to the parent company was 1.160 billion yuan, a year-on-year increase of 46.27%; non-net profit after deducting 734 million yuan, a year-on-year increase of 13.94%; basic earnings per share was 1.88 yuan /share.
The competitiveness of etching equipment continues to improve, and revenue has grown significantly in the first three quarters. The company's etching equipment continues to be approved by customers for more etching applications, its market share continues to increase, and it continues to receive batch orders from leading customers. In the first three quarters, the company's etching equipment achieved operating income of 2.870 billion yuan, a year-on-year increase of approximately 43.40%, with a gross profit margin of 46.46%; MOCVD equipment achieved operating income of 409 million yuan, a year-on-year increase of approximately 5.50%, with a gross profit margin of 36.39%. In a single quarter, the company achieved operating income of 1.515 billion yuan in 23Q3, a year-on-year increase of approximately 41.40%. The significant increase in revenue was due to the rapid growth in etching equipment revenue. Q3 achieved revenue of 1.148 billion yuan, a year-on-year increase of approximately 63.53%.
In 23Q3, the company achieved net profit attributable to shareholders of 157 million yuan, a year-on-year decrease of 51.76%. The main reason was that non-recurring gains and losses decreased by 180 million yuan compared with the same period last year.
The company is leading the layout of high-end equipment and is expected to benefit from the expansion of wafer fabs.
The company has successively laid out the second, third, and fourth major semiconductor equipment markets, namely etching equipment, thin film equipment, and optical inspection equipment, and has leading layout and development in these high-end equipment fields. Influence. By the end of September 2023, the company has a total of 3,819 plasma etching and chemical thin film reaction stations, and 117 production lines in China, Asia and Europe, fully achieving mass production and large-scale repeat sales. The semiconductor boom is gradually recovering, domestic wafer fabs are expected to continue to advance capital expenditures, and the company's semiconductor equipment is expected to benefit deeply from the expansion of domestic wafer fabs.
the company will continue to make breakthroughs in new products and open up the growth ceiling:
1) Etching: Continue to promote the research and verification of the integrated Damascus etching process for logic devices and the extremely high aspect ratio etching technology for memory devices, and further improve Etch process coverage.
2) Deposition: In terms of tungsten deposition, the first CVD tungsten equipment has been successfully introduced into the customer's production line, and more logic/storage customers are being connected for verification. The first mass production verification machine of the new model of CVD tungsten and ALD tungsten equipment has been carried out at the client. Testing; in terms of TiN deposition, ALD titanium nitride equipment used for high-end storage and logic devices is expected to be shipped to clients for mass production verification in 2023H2; EPI equipment has also entered the process debugging and customer verification stages.
3) Quantity testing: Holding shares in Ruili Instruments(Raintree Instruments), investing in front-line quantity testing equipment.
