Advanced Micro-Fabrication Equipment (688012) Q2 2024 earnings summary

Executive summary

• Revenue for H1 2024 reached ¥3.45 billion, up 36.46% year-over-year, driven by strong growth in plasma etching equipment sales.

• Net profit attributable to shareholders was ¥517 million, down 48.48% year-over-year, mainly due to the absence of one-time investment gains from the prior year and increased R&D spending.

• Orders in H1 2024 totaled ¥4.7 billion, up 40.3% year-over-year, with plasma etching equipment orders up 50.7%.

• R&D investment surged 110.84% year-over-year to ¥970 million, representing 28.15% of revenue.

Financial highlights

• Plasma etching equipment revenue was ¥2.70 billion, up 56.68% year-over-year, accounting for 78.26% of total revenue.

• MOCVD equipment revenue was ¥152 million, down 49.04% year-over-year due to market contraction in LED and Mini-LED.

• Gross margin and operating margin not explicitly stated, but net margin declined due to lower non-recurring gains and higher R&D.

• Basic EPS was ¥0.84, down 48.47% year-over-year.

• Net assets at period end were ¥18.17 billion, up 1.95% from year-end 2023.

Outlook and guidance

• The company continues to focus on high-end semiconductor and pan-semiconductor equipment, with ongoing expansion in new product lines and international markets.

• R&D will remain a strategic priority to close technology gaps and maintain competitiveness.

• Management expects continued growth in plasma etching and thin film equipment, with new products ramping up.