Key takeaway

The company generated revenue of RMB2.318bn in 1H26, up 34.45% YoY, representing rapid growth. Growth remained strong in 2Q26, mainly driven by a recovery in the semiconductor industry and increased capital expenditure by downstream wafer fabs, which gradually translated into demand for upstream equipment and components. The company’s gross margin increased YoY in 1H26, while its period expense ratio declined significantly. Its earlier investments in capacity and talent are gradually translating into delivery and revenue-generating capabilities. Meanwhile, the company continued to achieve product breakthroughs in gas distribution plates, electrostatic chucks, and metal heater plates. We are optimistic about the company’s potential for greater operating leverage going forward.

Event

In 1H26, the company generated revenue of RMB2.318bn, up 34.45% YoY; net profit attributable to shareholders of the parent company was RMB134mn, up 992.90% YoY; and net profit attributable to shareholders of the parent company excluding non-recurring gains and losses was RMB90mn, reversing a YoY loss.

In 2Q26 alone, the company generated revenue of RMB1.275bn, up 32.55% YoY; net profit attributable to shareholders of the parent company was RMB76mn, up 121.37% YoY; and net profit attributable to shareholders of the parent company excluding non-recurring gains and losses was RMB52mn, up 93.69% YoY.

Quick Take

Strong revenue and earnings growth in 1H26 amid recovering downstream demand and capacity ramp-up

Revenue grew rapidly in 1H26, with strong growth continuing in 2Q26 The company generated revenue of RMB2.318bn in 1H26, up 34.45% YoY, mainly driven by a recovery in the semiconductor industry and increased capital expenditure by downstream wafer fabs, which gradually translated into demand for upstream equipment and components. Meanwhile, the benefits of the company’s long-standing key account strategy and industry footprint became increasingly evident, accelerating the conversion of orders on hand into operating revenue. In 2Q26 alone, the company generated revenue of RMB1.275bn, up 32.55% YoY and 22.28% QoQ, maintaining relatively rapid growth.

Risks:

1) Mismatch risk between capacity reserves and market development: During industry upcycles, companies often increase capital expenditure, driving higher demand for related equipment; during downcycles, however, capital expenditure may be cut, reducing equipment demand. The company reserved capacity ahead of time in 2023, but with orders falling short of expectations, depreciation rose in the short term, putting pressure on profits.

2) Risk of R&D lagging behind process advancement and semiconductor equipment iteration: If the company’s product R&D cannot keep pace with customers’ process advancements and product iterations, its industry position and future operating performance will be adversely affected.

3) Management risk arising from scale expansion: With continuous growth in production and operations, an increasingly large organizational structure, and more management, technical, and production staff, plus cross-regional production once new fundraising-backed projects are completed and put into operation, higher demands are placed on management and internal controls. If the company’s management capabilities cannot match the pace of expansion, its operations and long-term development could be negatively affected.