ACMR

ACM Research is a rapidly scaling semiconductor wet-process equipment maker, with revenue up 15.2% to $901M, continuing a powerful run from $260M in FY2021. Gross margin is healthy at 44.4%, the balance sheet is strong (cash up 85.9% to $757M, equity up 61.9% to $1.46B, liabilities/equity just 0.64x), and R&D investment jumped 37.5% to $145M as it broadens its tool portfolio. The structural tailwind is China's drive for semiconductor self-sufficiency, where ACM's locally manufactured cleaning and plating tools are well positioned.

However, the structure and geopolitics complicate the equity case. Nearly all operations sit in ACM Shanghai, a separately listed STAR Market subsidiary, and management discloses that 'mainland China's currency exchange control and government restrictions on investment repatriation may impact our ability to transfer funds outside of mainland China' — ACM Shanghai retains its earnings and the US parent receives little cash. The ~80x trailing P/E is distorted because it values a tiny US float (14.2M shares) against consolidated EPS, while much of the economic value accrues to the listed Shanghai entity and minority holders.