On February 26, 2025, ACM Research Inc (ACMR, Financial), a prominent supplier of wafer processing solutions for semiconductor and advanced packaging applications, announced its financial results for the fourth quarter and fiscal year ending December 31, 2024. The company reported a 40% increase in revenue and a 63% rise in total shipments, alongside a 57.6% growth in operating profit. Key achievements include process qualification of its Thermal and Plasma-Enhanced ALD furnace tools in China and the commencement of operations at its Lingang production facility. Looking forward to 2025, ACMR aims to expand its business further, despite challenges posed by its subsidiaries' addition to the U.S. Entity List.
Positive Highlights
- Revenue increased by 40% to $782.1 million in 2024.
- Total shipments rose by 63.1% to $973 million.
- Operating profit grew by 57.6% to $151.0 million.
- Gross margin improved to 50.1% from 49.5%.
- Net income attributable to ACM Research, Inc. increased to $103.6 million.
- Successful process qualification of ALD furnace tools in China.
Negative Highlights
- Operating expenses increased by 33.4% to $240.6 million.
- Income tax expense rose to $35.0 million from $19.4 million.
- Impact of U.S. Entity List on ACM Research (Shanghai) operations.
Financial Analyst Perspective
ACM Research Inc's financial performance in 2024 demonstrates robust growth and operational efficiency. The significant increase in revenue and shipments indicates strong demand for its products, while the improvement in gross and operating margins reflects effective cost management. However, the rise in operating expenses and income tax expenses could pose challenges to maintaining profitability. The company's ability to manage the impact of its subsidiaries' addition to the U.S. Entity List will be crucial for sustaining its growth trajectory in 2025.
Market Research Analyst Perspective
ACM Research Inc's expansion into the Chinese market and the successful qualification of its ALD furnace tools highlight its strategic focus on growth in key regions. The company's investment in the Lingang production facility and its broadening product portfolio position it well to capture market share in the semiconductor industry. However, geopolitical factors, such as trade policies and the U.S. Entity List, may impact its operations and market expansion efforts. Monitoring these external factors will be essential for assessing ACMR's future market performance.
Frequently Asked Questions
Q: What was ACM Research Inc's revenue growth in 2024?
A: ACM Research Inc reported a 40% increase in revenue, reaching $782.1 million in 2024.
Q: How did ACM Research Inc's operating profit perform in 2024?
A: The company's operating profit grew by 57.6% to $151.0 million in 2024.
Q: What are ACM Research Inc's plans for 2025?
A: ACMR plans to expand its business with incremental revenue contributions from new products, increase localization in China, and manage the impact of its subsidiaries' addition to the U.S. Entity List.
Read the original press release here.
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