AMEC Visual China Infographic

On the evening of February 27, the leading semiconductor equipment company (688012. SH) announced its 2024 earnings report. During the period, the operating income was approximately RMB9.065 billion, an increase of approximately RMB2.802 billion over 2023, representing a year-on-year increase of approximately 44.73%. The net profit attributable to the owners of the parent company in 2024 will be about 1.626 billion yuan, a decrease of 8.93% from the same period last year.

AMEC disclosed that the sales of etching equipment in 2024 will be about 7.277 billion yuan, a year-on-year increase of about 54.73%; MOCVD (metal-organic compound chemical vapor deposition, MOCVD equipment is the key equipment in the production process of LED epitaxial wafers) equipment sales of about 379 million yuan, a year-on-year decrease of about 18.03%, LPCVD (low-pressure chemical vapor deposition) equipment will achieve the first sales in 2024, and the annual equipment sales will be about 156 million yuan.

Regarding the sharp increase in revenue but the failure of profits to synchronize, AMEC explained that the gross profit in 2024 will also increase by about 978 million yuan compared with last year. However, due to the sharp increase in market demand for the development of a variety of new equipment for AMEC, the company will significantly increase its R&D efforts in 2024 to lay a solid foundation for continuous growth. In 2024, the company's R&D investment will be about 2.452 billion yuan, an increase of 1.19 billion yuan over last year, a year-on-year increase of about 94.31%; In 2024, the R&D expenses will be 1.418 billion yuan, an increase of about 601 million yuan over last year, a year-on-year increase of about 73.59%.

In addition, in 2023, AMEC sold part of the shares of Tuojing Technology Co., Ltd., generating an after-tax net income of about 406 million yuan, while the company did not have such equity disposal gain in 2024.

AMEC said that in recent years, with the further acceleration of the development of emerging industries such as artificial intelligence, cloud computing, big data, and autonomous driving, semiconductor micro-processing equipment, as the key cornerstone of the digital industry, has developed rapidly. The company's main products are etching equipment and thin film equipment, which are the key core equipment of the semiconductor front, with a broad market space and high technical barriers. The company's etching equipment and thin film equipment continue to be recognized by many customers, and the new shipments and sales of high-end products targeting key processes in chip manufacturing have increased significantly.

According to the announcement, AMEC's current research projects cover six types of equipment and the development of more than 20 new devices. The company has achieved remarkable results in the development of new products, and in the past two years, the newly developed LPCVD film equipment and ALD film equipment have entered the market and obtained repeated orders. Among them, the cumulative shipment of LPCVD thin film equipment has exceeded 150 reaction benches, and a number of other key thin film deposition equipment R&D projects are progressing smoothly; The company's EPI equipment has successfully entered the stage of mass production verification of the client.

AMEC said it has made good progress in the development of MOCVD devices in the field of Micro-LED and high-end displays, and is actively laying out the market for silicon carbide and gallium nitride-based power device applications. The company's production and R&D base of about 140,000 square meters in Nanchang and about 180,000 square meters of production and R&D base in Lingang, Shanghai have been put into use, supporting the rapid growth of the company's product delivery and sales.

In addition, the production and operation management level of AMEC has been continuously improved, and the ability to control product costs and operating expenses has been effectively enhanced.

As of the close of trading on February 27, the company closed at 210.51 yuan, down 2.02%.