纵横研报
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#China Substitution

02Reports
·AI 半导体设备 ·内部研究

Hwatsing Technology: A Real CMP Champion, Priced as if the Platform Story Is Already Won

Hwatsing Technology (688120.SHG) is China's domestic leader in chemical-mechanical-polishing equipment, expanding from a single CMP tool into a broader semiconductor-equipment and services platform. 2025 revenue grew 36.5% to CNY 4.65 billion and net profit rose to CNY 1.08 billion, but operating cash flow fell 30.7% as inventory and receivables absorbed cash, even as the stock trades near 120.6x trailing earnings around the 99th percentile of its own valuation history. Rating Avoid: the CMP franchise and platform ambition are real, but the price already assumes a platform future the segment disclosures cannot yet prove, with the ideal buy zone at CNY 110 to 125.

688120.SHG Hwatsing Technology Co., Ltd. #Semiconductor Equipment#CMP#China Substitution#Valuation Premium#Platform Transition#Cash Conversion
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·AI 半导体设备 ·内部研究

ACM Research Shanghai: A Genuine Platform Story, Priced for Zero Margin of Safety

ACM Research Shanghai is the Shanghai-listed operating core of a dual-listed Chinese semiconductor wet-process equipment group, whose U.S. parent ACM Research (ACMR.US) holds a 73.6% stake but trades at a steep discount to the A-share line's implied look-through value. 2025 revenue rose 20.8% to CNY 6.79 billion and net profit rose 21.1% to CNY 1.40 billion, but operating cash flow collapsed to just CNY 239 million from CNY 1.22 billion and turned negative in the first quarter of 2026, even as the stock trades near 130 times trailing earnings and about 180% above the parent-implied look-through value. Rating Watch: the platform story is real, but the price already assumes near-flawless execution while cash conversion has weakened, with the ideal buy zone at CNY 140 to 150.

688082.SHG ACM Research Shanghai, Inc. #Semiconductor Equipment#Dual Listing#China Substitution#Cash Conversion#Advanced Packaging#Valuation Premium
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