ACM Research (ACMR) Shares Drop 2.8%

ACM Research (Shanghai), Inc. recently conducted a performance briefing on May 10, 2024, during which the company's leaders discussed the performance and financial position in Q1 2024. Here are some highlights from the briefing and the Q&A session:

  1. The company expects the acceptance of electroplating and cleaning equipment at the client side to be gradually reflected in Q2, Q3, and Q4 of 2024. The company also expects the gross margin for 2024 to be at the upper end of its 40%-45% target range.

  2. The company's spm tools include Tahoe, low-temperature single-wafer spm, and high-temperature single-wafer spm tools. It believes that the total available market for spm tools is 25%-30% of the total front-end cleaning market.

  3. The company has completed client-side verification of the first Saps cleaning equipment with a U.S. customer and expects to receive repeat orders in the future.

  4. There will be no need for repeated verification if the Korean plant expands production in the future, as the acceptance standards of SK Hynix's Wuxi plant and the Korean plant are unified.

  5. The company's revenue growth has been good for the past several years. It expects to disclose its orders at the end of Q3 in 2024.

  6. The company expects a potential increase in domestic orders for its equipment, especially with the growth of domestic packaging factories' demand for 2.5D and 3D packaging.

  7. The company anticipates that the capacity for domestic mature processes will continue to expand.

  8. The company's cleaning and copper-plating products have achieved a good footprint among its mainland China-based customers, and the number of customers for furnace equipment is also expected to increase.

  9. The advanced packaging market is expected to have great room for growth, and its sales revenue is anticipated to account for about 10%-15% of the total revenue in 2024.

  10. The company's entire line of wet cleaning equipment and copper-electroplating equipment can be applied to the DRAM (High Bandwidth Memory, HBM) process.

  11. The sales mix of the cleaning equipment is currently growing significantly and is expected to remain at about 70% of revenue.

  12. The company expects 2-3 customers for PECVD this year and plans to accelerate the R&D progress of PECVD, cleaning equipment, and furnace equipment.

  13. The front-end coating development track equipment is a natural result of the company's accumulated expertise in cleaning, advanced packaging coating, and development over the past 10+ years.

These insights from the performance briefing offer a detailed look at ACM Research (Shanghai), Inc.'s activities and expectations, providing valuable information for investors and industry observers alike. As a result of these announcements, the company's shares have moved -2.8% on the market, and are now trading at a price of $23.8. For more information, read the company's full 8-K submission here.

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