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Section 1: Company Overview and Fundamentals
1.1 Company Overview:
ACM Research, Inc. (NASDAQ: ACMR) develops, manufactures and sells semiconductor process equipment for single-wafer or batch wet cleaning, electroplating, polishing and thermal processes that are critical to advanced semiconductor device manufacturing, as well as wafer-level packaging. The Company offers two principal models of wet wafer cleaning equipment based on its Space Alternated Phase Shift (SAPS) technology, Ultra C SAPS II and Ultra C SAPS V.
Kalkine’s Diversified Opportunities Report covers the Company Overview, Key positives & negatives, Investment summary, Key investment metrics, Top 10 shareholding, Business updates and insights into company recent financial results, Key Risks & Outlook, Price performance and technical summary, Target Price, and Recommendation on the stock.
Stock Performance:
1.2 The Key Positives, Negatives, and Investment summary
1.3 Top 10 shareholders:
The top 10 shareholders together form ~36.51% of the total shareholding, signifying diverse shareholding. The Vanguard Group, Inc., and BlackRock Institutional Trust Company, N.A. are the biggest shareholders, holding the maximum stake in the company at ~6.97% and ~6.05%, respectively.
1.4 Key Metrics
From 2019 to 2023, ACM Research, Inc. experienced notable revenue growth, increasing from USD 107.5 million in 2019 to USD 557.7 million in 2023. During the same period, gross profit also rose significantly from USD 50.7 million to USD 276.2 million, reflecting the company's enhanced operational efficiency and effective cost management. The gross margin showed an overall improvement, starting at 47.16% in 2019 and reaching 49.52% in 2023, despite slight fluctuations. This upward trend in gross margin indicates ACM Research's ability to improve profitability through efficient operations and strategic pricing. Furthermore, an analysis of the company's financial performance in Q1FY24 reveals that its EBITDA margin was 18.2%, operating margin was 16.6%, pretax margin was 17.4%, and net margin was 14.5%, all of which were significantly higher than the respective industry medians of 17.7%, 9.7%, 10.1%, and 7.1%. This strong performance across key financial metrics underscores ACM Research's robust competitive position and its capability to sustain growth and maintain financial health.
Section 2: Business Updates and Corporate Business Highlights
2.1 Recent Updates:
The below picture gives an overview of the recent updates:
2.2 Insights of Q1FY24:
Section 3: Key Risks & Outlook
Section 4: Stock Recommendation Summary:
4.1 Price Performance and Technical Summary:
Stock Performance:
4.2 Fundamental Valuation
Valuation Methodology: EV/Sales Multiple Based Relative Valuation
Markets are trading in a highly volatile zone currently due to certain macroeconomic issues and geopolitical tensions prevailing. Therefore, it is prudent to follow a cautious approach while investing.
Note 1: Past performance is not a reliable indicator of future performance.
Note 2: The reference date for all price data, currency, technical indicators, support, and resistance levels is June 05, 2024. The reference data in this report has been partly sourced from REFINITIV.
Note 3: Investment decisions should be made depending on an individual's appetite for upside potential, risks, holding duration, and any previous holdings. An 'Exit' from the stock can be considered if the Target Price mentioned as per the Valuation and or the technical levels provided has been achieved and is subject to the factors discussed above.
Note 4: The report publishing date is as per the Pacific Time Zone.
Technical Indicators Defined: -
Support: A level at which the stock prices tend to find support if they are falling, and a downtrend may take a pause backed by demand or buying interest. Support 1 refers to the nearby support level for the stock and if the price breaches the level, then Support 2 may act as the crucial support level for the stock.
Resistance: A level at which the stock prices tend to find resistance when they are rising, and an uptrend may take a pause due to profit booking or selling interest. Resistance 1 refers to the nearby resistance level for the stock and if the price surpasses the level, then Resistance 2 may act as the crucial resistance level for the stock.
Stop-loss: It is a level to protect against further losses in case of unfavorable movement in the stock prices.
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