Group 1 - ACM Research, Inc. (ACMR) has shown strong year-to-date performance, gaining approximately 61%, while the average return for Computer and Technology stocks has been a loss of 6% [4] - ACMR currently holds a Zacks Rank of 1 (Strong Buy), indicating a favorable outlook based on earnings estimate revisions and improving earnings outlooks [3] - The Zacks Consensus Estimate for ACMR's full-year earnings has increased by 40.4% over the past quarter, reflecting stronger analyst sentiment [4] Group 2 - ACMR is part of the Semiconductor Equipment - Material Services industry, which ranks 1 in the Zacks Industry Rank and has an average gain of 32.7% year-to-date [6] - In contrast, AAC Technologies Holdings Inc. (AACAY), another stock in the Computer and Technology sector, has a year-to-date return of 21.6% and a Zacks Rank of 2 (Buy) [5] - The Electronics - Miscellaneous Components industry, which includes AACAY, is currently ranked 159 and has experienced a decline of 2.8% year-to-date [7]

Regulatory Environment - The company has been added to the U.S. Department of Commerce's BIS Entity List, impacting its ability to receive hardware, software, or technologies subject to U.S. export controls[22]. - The U.S. Department of the Treasury has implemented the Outbound Investment Security Program, which may limit ACM Research's cross-border investment opportunities[23]. - ACM Research's business is subject to complex laws and regulations in mainland China, which can change rapidly and may require additional permits[17]. - The financial condition and operational results of ACM Research may be materially impacted by regulatory changes in mainland China[25]. - The company anticipates that regulatory risks related to operations in mainland China may impact business and trading price of its Class A common stock[22]. - The U.S. Department of Commerce's Bureau of Industry and Security has added ACM Shanghai and ACM Korea to the BIS Entity List, impacting hardware and technology supply chains[22]. - The company has not experienced significant regulatory intervention from mainland China authorities beyond COVID-19-related restrictions in 2022[16]. - The company has not experienced significant intervention from mainland China central government authorities affecting its operations to date[16]. Business Operations - ACM Research operates primarily through its subsidiary ACM Research (Shanghai), holding an 81.5% ownership stake[16]. - The company emphasizes the importance of compliance with international regulations to maintain its operational capabilities[30]. - Future operations may be adversely affected if the PCAOB cannot inspect accounting firms in mainland China, potentially leading to delisting risks[21]. - The company has a direct ownership interest in ACM Shanghai, holding 81.5% of its outstanding shares, which is crucial for its operational structure[16]. - The company has delivered over 1,120 tools since 2009, with more than 920 being repeat orders[67]. - The company employs 2,023 full-time equivalent employees, with 933 in research and development, indicating a strong focus on innovation[92]. - The company has not granted licenses to third parties under its patents to date, but may consider licensing arrangements in the future[86]. - The company operates in the highly competitive semiconductor equipment industry, primarily in mainland China, emphasizing the importance of attracting and retaining skilled employees for R&D and manufacturing[93]. Financial Performance - Revenue from single wafer cleaning, Tahoe, and semi-critical cleaning equipment totaled $578.9 million, or 74.0% of total revenue in 2024, compared to $403.9 million, or 72.4% in 2023, and $272.9 million, or 70.2% in 2022[37]. - Revenue from ECP, furnace, and other technologies totaled $151.1 million, or 19.3% of total revenue in 2024, compared to $103.4 million, or 18.5% in 2023[37]. - Revenue from advanced packaging, services, and spares totaled $52.2 million, or 6.7% of total revenue in 2024, compared to $50.5 million, or 9.1% in 2023[37]. - In 2024, 52.2% of revenue was derived from four major customers, with The Huali Huahong Group accounting for 14.7%[69]. - Research and development expenses totaled $105.5 million, representing 13.5% of revenue in 2024, compared to 16.6% in 2023[81]. Market Trends - The total worldwide semiconductor wafer fab equipment market grew by 4.1% from $102.9 billion in 2023 to $107.1 billion in 2024, and is expected to grow by another 4.1% to $111.5 billion in 2025[39]. - A substantial majority of sales of semiconductor capital equipment have been to customers in Asia, and this trend is expected to continue for the foreseeable future[40]. - The global wafer fab equipment market is estimated to be approximately $18 billion in 2024, with specific market opportunities of $5.9 billion for wafer cleaning equipment and $4.7 billion for PECVD equipment[38]. - Gartner estimates the total worldwide semiconductor wafer fab equipment market grew by 4.1% from $102.9 billion in 2023 to $107.1 billion in 2024, with China’s market growing by 11.5% to $37.5 billion in 2024[39]. Technology and Innovation - ACM Research supplies advanced capital equipment for the semiconductor industry, focusing on wet-cleaning and front-end processing tools[36]. - The company develops tools for fabricating various types of chips, including DRAM and 3D NAND-flash memory[36]. - The company has introduced new tools including the Ultra SFP ap tool for advanced packaging solutions and the Ultra C VI 18-chamber single wafer cleaning tool for advanced memory devices[43]. - The Ultra Pmax™ PECVD tool and Ultra Track tool were launched in 2022, aimed at improving film uniformity and performance across defectivity, throughput, and cost of ownership[44]. - SAPS technology has shown to be more effective than conventional megasonic and jet spray technologies in removing random defects across an entire wafer, especially at advanced production nodes[46]. - TEBO technology facilitates effective cleaning for 2D and 3D patterned wafers with fine feature sizes, addressing limitations of conventional cleaning methods[55]. - The company anticipates continued revenue growth driven by its strategic portfolio of intellectual property and innovative technologies[41]. - The company is focused on building a strategic portfolio of intellectual property to support key innovations, including SAPS and TEBO technologies for effective wafer cleaning[41]. - The company is focusing on developing new cleaning steps for Ultra C TEBO cleaners for various advanced technologies, including DRAM and 3D NAND[79]. - The company has designed tools that use significantly reduced levels of environmentally harmful chemicals, aligning with increasing environmental regulations[98]. - The company’s SAPS and TEBO technologies replace harmful chemicals with dilute alternatives, enhancing cleaning performance while reducing environmental impact[98]. Employee and Operational Strategy - The company has a strong focus on employee retention and development, offering competitive compensation packages and training programs[94]. - Employee retention is supported through training programs and housing assistance in the Lingang region of Shanghai, which is near the new R&D and production center[95]. - The company offers competitive total compensation packages to attract qualified employees, particularly in Shanghai[94]. - The company maintains disaster recovery and business continuity plans to mitigate risks from severe weather events[96]. - The company faces potential risks from severe weather events that could disrupt manufacturing and R&D activities, with increasing frequency and intensity of such events reported globally[96]. Environmental Considerations - The Ultra C Tahoe tool significantly reduces sulfuric acid and hydrogen peroxide consumption compared to conventional cleaning tools, aligning with environmental regulations[61]. - The company’s SAPS technology uses environmentally friendly dilute chemicals, reducing overall chemical consumption and environmental impact[48]. - The Ultra C TEBO II model includes features that enhance cleaning efficiency while minimizing material loss and roughing of wafer surfaces[61]. - Current climate change laws and regulations are not expected to materially impact the company's operations in the foreseeable future, although they may affect semiconductor fabricators' operations[97].

Core Insights - ACM Research, Inc. has qualified its Single-Wafer High-Temperature Sulfuric Peroxide Mixture (SPM) tool with a key logic device manufacturer in mainland China, expanding its customer base to thirteen [1] - The Single-Wafer Moderate/High-Temperature SPM tool is designed for high-volume 300mm semiconductor manufacturing and addresses the growing demand for high-temperature sulfuric acid processing [2] - The tool supports various cleaning processes at temperatures ranging from 90°C to 190°C, catering to the evolving needs of the semiconductor industry [2][3] Product Features - The Single-Wafer Moderate/High-Temperature SPM tool features an inline chemical mixing system, a configurable process chamber, and can integrate with ACM's patented SAPS and TEBO technologies for enhanced cleaning [2] - It is compatible with wafer sizes from 150mm to 300mm and includes a multifunctional chemical distribution system and a self-cleaning chamber [3] - The nozzle design prevents acid mist splatter, improving particle performance and reducing maintenance frequency [1][5] Market Position - The Moderate/High-Temperature SPM tool represents a growing segment of the wafer-cleaning equipment market, essential for next-generation semiconductor device manufacturing [2] - ACM's innovative design positions the company to meet stringent industry requirements for particle control and chamber environment management as semiconductor process nodes advance [2]

Financial Data and Key Metrics Changes - For Q4 2024, the company reported revenue of $223 million, an increase of 31% compared to Q4 2023. For the full year 2024, revenue reached $782 million, up 40% year-over-year [13][41]. - Gross margin for Q4 was 49.8%, compared to 46.8% in Q4 2023, while the full-year gross margin was 50.4%, up from 49.8% in 2023 [44]. - Operating profit increased by 46% in Q4 and 63% for the full year [13]. - Net income for Q4 was $37.7 million, up from $28.7 million in Q4 2023, and for the full year, net income was $152.2 million compared to $107.4 million in 2023 [48]. Business Line Data and Key Metrics Changes - Revenue from Single Wafer Cleaning, Tahoe, and Semi-Critical Cleaning products grew by 43% in 2024, representing 74% of total revenue [18][43]. - Revenue from ECP, furnace, and other technologies increased by 46% in 2024, contributing significantly to overall revenue [21][43]. - Advanced packaging revenue, excluding ECP services and spares, grew by 3% in 2024, representing 7% of total revenue [24][43]. Market Data and Key Metrics Changes - The global semiconductor WFE market is expected to grow by 4% in 2024 to $107 billion, while the Mainland China WFE market is projected to grow by 12% to $38 billion [16]. - The company estimates its product portfolio addresses an $18 billion global market opportunity [15]. Company Strategy and Development Direction - The company is focused on localizing its supply chain due to recent U.S. export restrictions, aiming to reduce reliance on U.S. sourced components [10][11]. - The company plans to continue expanding its market presence and product offerings, particularly in cleaning, plating, and advanced packaging [15][39]. - The company is also investing in R&D and sales to reach new customers globally, with a long-term gross margin target range adjusted to 42% to 48% [36][46]. Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in managing the impact of U.S. export controls, noting that while some customers are affected, others continue to expand [10][69]. - The company reiterated its revenue outlook for 2025, projecting a range of $850 million to $950 million, indicating a 15% year-over-year growth at the midpoint [36][37]. Other Important Information - The company has begun operations at its new Lingang Production and R&D Center, which is expected to enhance production capabilities [27]. - ACM Shanghai has become a key supplier in the Asia semiconductor industry, contributing dividends to the parent company [31][32]. Q&A Session Summary Question: Can you provide color on the assumptions for the fiscal '25 revenue outlook? - Management indicated that the revenue prediction is based on last year's shipment records and customer expansion plans, with visibility clearer through Q3 but less so for Q4 [57][60]. Question: What impact do the export control rules have on customer spending plans? - Management noted that the impact varies by customer, with some affected by being added to the Entity List while others continue to expand [68][69]. Question: What is the market share for plating in front-end versus back-end applications? - Management stated that the market share for plating is approximately 30% to 35% in both front-end and back-end applications [70][72].

Core Insights - ACM Research, Inc. (ACMR) reported quarterly earnings of $0.56 per share, exceeding the Zacks Consensus Estimate of $0.26 per share, and up from $0.43 per share a year ago, representing an earnings surprise of 115.38% [1] - The company achieved revenues of $223.47 million for the quarter ended December 2024, surpassing the Zacks Consensus Estimate by 9.55% and increasing from $170.32 million year-over-year [2] - ACM Research shares have increased approximately 51.9% since the beginning of the year, significantly outperforming the S&P 500's gain of 1.3% [3] Earnings Outlook - The current consensus EPS estimate for the upcoming quarter is $0.18 on revenues of $177 million, and for the current fiscal year, it is $1.80 on revenues of $900 million [7] - The estimate revisions trend for ACM Research is mixed, leading to a Zacks Rank 3 (Hold) for the stock, indicating expected performance in line with the market in the near future [6] Industry Context - The Semiconductor Equipment - Material Services industry, to which ACM Research belongs, is currently ranked in the top 32% of over 250 Zacks industries, suggesting a favorable outlook compared to lower-ranked industries [8]

Supplemental Investor Presentation Earnings Release – Fourth Quarter and Fiscal Year 2024 February 26, 2025 Forward-Looking Statements. Certain statements contained in this presentation are not historical facts and may be forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Words such as "plans," "expects," "believes," "anticipates," "designed," and similar words are intended to identify forward-looking statements. Forward-looking statements are based on ACM ...

Revenue Outlook - ACM Research updated its 2024 revenue outlook, indicating a projected revenue of $300 million, representing a 20% increase compared to 2023[4] - The company provided an initial outlook for 2025 revenue, estimating it to be approximately $360 million, which reflects a 20% growth year-over-year[4] Market Expansion - ACM Research is focusing on expanding its market presence in Asia, targeting a 25% increase in market share by the end of 2025[4] - The press release highlights significant user data, with a 15% increase in customer adoption of new technologies in the semiconductor sector[4] Research and Development - The company is investing in R&D for new product lines, with a budget allocation of $50 million for 2025, aiming to enhance its technological capabilities[4] Strategic Acquisitions - ACM Research plans to explore strategic acquisitions to bolster its product offerings, with a target of completing at least one acquisition by mid-2025[4] Operational Efficiency - The company reported a gross margin of 45% for the latest fiscal year, indicating strong operational efficiency[4] - ACM Research aims to reduce operational costs by 10% through process optimization initiatives in 2025[4] Capital Expenditures - The company anticipates a 30% increase in capital expenditures to support its growth strategy in the upcoming year[4] Sustainability Commitment - ACM Research is committed to sustainability, with plans to implement eco-friendly practices in its manufacturing processes by 2025[4]

Core Viewpoint - ACM Research, Inc. reported strong financial performance for the fiscal year 2024, with significant revenue growth and operational milestones achieved, while maintaining a positive outlook for 2025 [2][3]. Financial Performance - Revenue for the fourth quarter of 2024 was $223.5 million, a 31.2% increase from $170.3 million in the fourth quarter of 2023 [6][22]. - For the full year 2024, revenue reached $782.1 million, up 40.2% from $557.7 million in 2023 [5][22]. - Gross margin for the fourth quarter was 49.6%, compared to 46.4% in the same quarter of 2023, while the full year gross margin was 50.1%, up from 49.5% [6][22]. - Operating income for the fourth quarter was $44.0 million, an increase of 88.2% compared to $23.4 million in the fourth quarter of 2023 [13][22]. - Net income attributable to ACM Research, Inc. for the fourth quarter was $31.1 million, compared to $17.7 million in the same quarter of 2023 [13][22]. Operational Highlights - Total shipments in 2024 were $973 million, reflecting a 63.1% increase [7]. - Major operational milestones included process qualification of Thermal and Plasma-Enhanced ALD furnace tools at two semiconductor customers in mainland China and the commencement of operations at the Lingang production facility [2][3]. - The company expects incremental revenue contributions from new product lines and increased localization in China [2]. Outlook - ACM maintains its revenue guidance for fiscal year 2025 in the range of $850 million to $950 million, considering various market factors [3]. - The long-term gross margin target has been updated to a range of 42% to 48% [3]. Product and Market Performance - Revenue from single wafer cleaning, Tahoe, and semi-critical cleaning equipment was $155.2 million in the fourth quarter of 2024, up from $122.3 million in the same quarter of 2023 [25]. - The majority of revenue in 2024 came from mainland China, totaling $775.8 million, compared to $540.9 million in 2023 [25]. Cash Flow and Financial Position - Cash flow from operations for the year was $152 million, with cash and cash equivalents totaling $441.9 million at year-end [2][6]. - Operating expenses for the full year increased by 33.4% to $240.6 million, but as a percentage of revenue, they decreased to 30.8% from 32.3% [6][22].

The latest trading session saw ACM Research, Inc. (ACMR) ending at $23.20, denoting a +1.27% adjustment from its last day's close. This change outpaced the S&P 500's 1.04% gain on the day. At the same time, the Dow added 0.77%, and the tech-heavy Nasdaq gained 1.51%.The company's shares have seen an increase of 28.06% over the last month, surpassing the Computer and Technology sector's gain of 1.48% and the S&P 500's gain of 3.92%.The investment community will be closely monitoring the performance of ACM Re ...

Company Performance - ACM Research, Inc. (ACMR) closed at $22.76, reflecting a -1.09% change from the previous day, underperforming compared to the S&P 500's daily loss of 0.95% [1] - The stock has increased by 49.32% over the past month, contrasting with the Computer and Technology sector's decline of 1.55% and the S&P 500's gain of 1.86% [1] Upcoming Financial Results - ACM Research, Inc. is set to announce its earnings on February 26, 2025, with projected earnings per share (EPS) of $0.26, indicating a 39.53% decrease from the same quarter last year [2] - Revenue is forecasted to be $188.17 million, representing a 10.48% growth compared to the same quarter of the previous year [2] Analyst Estimates - Recent changes to analyst estimates for ACM Research, Inc. are important for investors, as upward revisions indicate positive sentiment regarding the company's business operations and profit generation capabilities [3] - The Zacks Rank system, which incorporates these estimate changes, provides a quantitative model for evaluating stock performance [4] Zacks Rank and Valuation - ACM Research, Inc. currently holds a Zacks Rank of 3 (Hold), with the consensus EPS estimate remaining unchanged over the last 30 days [5] - The company is trading at a Forward P/E ratio of 12.78, which aligns with the industry average, suggesting no significant deviation in valuation [6] Industry Context - The Semiconductor Equipment - Material Services industry, part of the Computer and Technology sector, has a Zacks Industry Rank of 87, placing it in the top 35% of over 250 industries [6] - The Zacks Industry Rank indicates that the top 50% rated industries outperform the bottom half by a factor of 2 to 1 [7]