AMEC 1Q26：营收略低于预期，投资收益助力净利润超预期

Advanced Micro-Fabrication Equipment Inc China Zheng Cui+852 2123 2694zheng.cui@bernsteinsg.com Francis Ma+852 2123 2626francis.ma@bernsteinsg.com Price Target 688012.CH 460.00 CNY AMEC 1Q26: Rev slightly missed, bottom line beat withinvestment gains On Apr 27th, 2026, AMEC reported its 1Q26 results (Exhibit 1). Overall, top line slightlymissed while bottom line was saved by investment gains. AMEC 1Q26 rev at RMB 2.92billion, YoY 34.13%, continuing its rapid growth. Net profit attributable to shareholdersreached RMB 930 mn, YoY +97.20%. The significant increase in net profit attributable toshareholders was mainly due to the YoY increase in gross profit of approximately RMB 260mn driven by the increase in revenue, and the after-tax net gain of approximately RMB 397mn from the sale of some Piotech shares (Exhibit 3). We believe the fluctuation in rev isnormal, and memory capacity expansion will bring significant upside in order growth in 2026.Reiterate Outperform, AMEC is our top pick in 2Q26. Announcement of 90:1 CCP HAR, 140:1 ICP HAR & 700:1 high selectivity etchingtools. AMEC reports that its next-generation 90:1 CCP ultra-HAR cryogenic etchingequipment (mainly for dielectric etching in 400L+ NAND structures) has been deliveredto clients for verification. The second-generation ICP etching equipment, Primo Angnova,achieved a high aspect ratio etching of 140:1 for 3D DRAM applications and has beendelivered to leading domestic memory clients for verification. The new chemical vaporetching equipment, Primo Domingo, achieved an industry-leading 700:1 ratio in SiGe/Si highselectivity etching and performed excellently in GAA and 3D DRAM laboratory verifications.These products indicate that AMEC has gone beyond just catching up with global leadersin etching, and these high-end etching products could play a very critical role in the co-development of next generation structures with local logic/memory players. AMEC's new order growth in 2026 will significantly benefit from the aggressivecapacity expansion by the local NAND/DRAM players. With a high exposure to memory(~65% of 2025 order), AMEC is a key beneficiary of the memory expansion. We believethe order from local memory customers in 2026 could be more than double vs 2025, neworder confirmations could be the strong catalysts across this year. In addition, local DRAMcustomers are accelerating the equipment localization, AMEC could significantly gain moreshare within the segment. We expect market to react positively in 2Q26 when the ordercomes in, along with potential CXMT IPO and YMTC potentially submit prospectus. INVESTMENT IMPLICATIONS We rate AMEC Outperform. BERNSTEIN TICKER TABLE I. REQUIRED DISCLOSURES References to "Bernstein" or the “Firm” in these disclosures relate to the following entities: Bernstein Institutional Services LLC(April 1, 2024 onwards), Sanford C. Bernstein & Co., LLC (pre April 1, 2024), Bernstein Autonomous LLP, BSG France S.A. (April 1,2024 onwards), Sanford C. Bernstein (Hong Kong) Limited盛博香港有限公司,Sanford C. Bernstein (Canada) Limited, SanfordC. Bernstein (India) Private Limited (SEBI registration no. INH000006378), Sanford C. Bernstein (Singapore) Private Limited,Sanford C. Bernstein Japan KK(サンフォード・C・バーンスタイン株式会社)and analysts employed by Société GénéraleAfrica Technologies & Services to produce Bernstein research under a Global Services Agreement in place between Bernsteinand Société Générale. Bernstein is part of a joint venture between Société Générale (SG) and AllianceBernstein, L.P. (AB). Unless specifically notedotherwise, for purposes of these disclosures, references to Bernstein’s “affiliates” relate to both SG and AB and their respectiveaffiliates. VALUATION METHODOLOGY Advanced Micro-Fabrication Equipment Inc China We value AMEC at a PT of CNY460with 76x Price to EPS multiple, based on our estimate of 2027 earnings per share of RMB6.05 (was 6.88) . RISKS Advanced Micro-Fabrication Equipment Inc China Downside risks: •Worse-than-expected MOCVD revenue decline due to sluggish LED equipment demand.•The capital expenditure for fabs in China did not meet the expected targets.•Slower-than-expected domestic equipment localization progress due to unforeseen technical difficulties in specificmanufacturing processes or production capacity bottlenecks of domestic equipment manufacturers. RATINGS DEFINITIONS, BENCHMARKS AND DISTRIBUTION EQUITY RATINGS DEFINITIONS Bernstein brand The Bernstein brand rates stocks based on forecasts of relative performance for the next 12 months versus the S&P 500 forstocks listed on the U.S. and Canadian exchanges, versus the Bloomberg Europe Developed Markets Large and Mid Cap PriceReturn Index EUR (EDME) for stocks listed on the European exchanges and emerging markets exchanges outside of the AsiaPacific region, versus the Bloomberg Japan Large and Mid Cap Price Return Index USD (JPL) for stocks listed on the Japaneseexchanges, and versus the Bloomberg Asia ex-Japan Large and