Advanced Micro-Fabrication Equipment (688012) Q3 2024 earnings summary

Executive summary

• Revenue for the first nine months of 2024 reached ¥5.51 billion, up 36.27% year-over-year, with etching equipment revenue up 53.77% to ¥4.41 billion.

• Net profit attributable to shareholders for the first nine months was ¥912.98 million, down 21.28% year-over-year, mainly due to increased R&D and absence of prior year’s equity disposal gains.

• Q3 2024 revenue was ¥2.06 billion, up 35.96% year-over-year; Q3 net profit surged 152.63% to ¥396 million, driven by higher gross profit and investment gains.

• New orders in the first nine months totaled ¥7.64 billion, up 52% year-over-year, with etching equipment orders up 54.7%.

Financial highlights

• Gross margin improved in Q3 due to revenue growth and product mix; Q3 net profit margin increased significantly.

• R&D expenses for the first nine months were ¥1.54 billion, up 95.99% year-over-year, accounting for 28.03% of revenue.

• Operating cash flow for the first nine months was ¥267.57 million, reversing a negative outflow from the prior year.

• Basic EPS for the first nine months was ¥1.48, down from ¥1.88 a year ago.

Outlook and guidance

• Company is increasing R&D investment to address rapid growth in demand for new equipment and to strengthen future competitiveness.

• Advanced etching and LPCVD products are ramping up, with new product shipments and customer validation progressing well.