ACM Research Inc, trading its stock as NASDAQ: ACMR at https://www.webull.com/quote/nasdaq-acmr, produces semiconductor procedural equipment for wet cleaning, stress-free polishing, electroplating, and other thermal processes. All these processes are crucial to the improved methods of semiconductor device production and packaging of wafer-level.
ACM Research is dedicated to providing customized, cost-effective and efficient processing solutions that should improve the productivity and production yield of the semiconductor producers.
The potential for growth in ACM Research Inc.
With their specialization in the technology of wet processing, the company has an amazing range of design for numerous applications. The technology of the company gives it a position from where it can attain a lot of growth in the shares NASDAQ: ACMR.
It can be said rightly that the company ACM Research Inc. is one among the top makers of wafer or batch wet-cleaning tools. Wafer cleaning is a process that is executed at various instances during the procedure of water fabrication. Some most frequently repeated sub-processes here are post-photo-resist, post-etch, and post-CMP.
According to reports, ACMR holds about 20 percent of the share allocation in YMTC’s cleaning tool businesses among its peers in China.
The analysts have noticed that the company is directing much of its emphasis on expanding its product range in the past few quarters. The new line of products it has launched includes cleaning tools of semi-critical nature, furnaces, and copper electroplating equipment. The serviceable available market for NASDAQ: ACMR has thus a great scope of expansion owing to the launch of these products. It may expand from US$1.5 billion to US$5 billion every year.
What are the factors on which these bullish theses are based?
The analysts who present the above bullish thesis base their constructive judgments for the company on the following factors:
- The company has an excellent track record and premium-quality customer base. Also, it has technological expertise, which it is further improving. These combine to enable ACM Research to get hold of more shares of local fabs.
- China has made huge investments in the production of semiconductor and thus its demand is continually increasing. Consequently, it is expected by the analysts that the net profits shall increase by 63% CAGR in 2020E-25E.
The growth profile of ACMR is well aligned with that of the average of its industry. The shares of NASDAQ: ACMR are currently exchanging hands at 31x/20x of the estimates of 2021/22E EPS. Thus, the valuation becomes compelling. Considering all of the above, ACMR can be rated as a Buy with the price target being $150. If you are new to stock market and do not know how to get into stocks, you can check such information at online stock trading platforms.
Disclaimer: The analysis information is for reference only and does not constitute an investment recommendation.