-- Advanced Micro-Fabrication Equipment China or AMEC (SHA:688012) saw a nearly threefold increase in profit in the first quarter of 2026, boosted by asset sales and rising demand for advanced etching tools.
Attributable profit surged 197% to 930.5 million yuan in the first quarter from 313.1 million yuan in the year-ago period, according to a Shanghai bourse filing on Tuesday.
The Chinese chip gear maker's earnings per share nearly tripled to 1.47 yuan from 0.50 yuan in the prior-year period.
Revenue jumped 34% year over year to 2.91 billion yuan from 2.17 billion yuan, close to the average annual revenue growth of more than 35% for the past 14 years, AMEC said.
Research and development expenses grew 32% or by 221 million yuan, year over year, equivalent to 31% of revenue for the quarter, the chip gear manufacturer said.
AMEC also attributed its strong performance to net after-tax gains of 397 million yuan from the sale of part of its stake in TopJade Technology.
Shipments of chipmaking equipment for etching of advanced logic and memory devices also grew during the period, AMEC said.
The company was able to develop more than 300 etching machines for ultra-high aspect ratio etching processes, while it has also delivered its ultra-high aspect ratio cryogenic etching gear to clients for verification, according to the filing.
The surge comes as China's semiconductor trade deficit rose 17% in the first quarter, helping strengthen the desire for more aggressive foundry capacity in the next five years, investment bank Jefferies said in a note April 23.
Jefferies maintained a buy rating on AMEC, considering the company its top pick for Chinese wafer fab equipment manufacturers, as it is highly leveraged toward Chinese memory capital expenditure, the investment bank said.