China Semi Equipment "Improved growth visibility for 2027-28 reinforcing..."

Research evidence excerpt

China Semi Equipment "Improved growth visibility for 2027-28 reinforcing..."

Global Research

22 May 2026ab

China Semi Equipment Equities

ChinaImproved growth visibility for 2027-28

reinforcing our constructive view Semiconductors

Jimmy Yu

Analyst

jimmy.yu@ubs.com

Better visibility on WFE spend uptrend; raising PTs for NAURA, AMEC and ACMR +86-21-3866 8880

We raise our YoY growth forecasts for China's WFE spend from +6%/+1% to +18%/ Nicolas Gaudois

+14% for 2027E/28E, while fine-tuning our 2026E forecast from +10% to +7% on a Analyst

higher 2025 base. Accordingly, we lift 2027/28E earnings for the three major Chinese nicolas.gaudois@ubs.com

vendors that we cover by 2-17%. The upward revisions are mainly driven by: 1) higher +65-6495 5148

visibility on the sustainability of Chinese memory makers' capex in 2027/28, given the Timothy Arcuri

substantially improved profitability and FCF of CXMT and YMTC (the two largest Analyst

customers of the big Chinese WFE vendors); 2) the likely acceleration in equipment timothy.arcuri@ubs.com

localisation in DRAM from 2026; and 3) NAURA's and AMEC's optimistic commentary +1-415-352 5676

on the demand and order outlook. Despite our covered names' strong stock price Yongwei Lai

performance (+47% YTD), we believe their higher earnings growth, supported by Analyst

secular drivers, has yet to be fully priced in (41-48x 2027E PE vs 34-42% 2027-29E EPS S1460524110001

CAGR). Reiterate Buy on NAURA, AMEC and ACMR Shanghai. yongwei.lai@ubs.com

+86-21-3866 8780

Stronger and sustainable memory capex growth in 2027/28 Francois-Xavier Bouvignies

In its updated draft IPO prospectus (published over the weekend), CXMT guides revenue Analyst

of Rmb110-120bn and net profit of Rmb50-57bn for H126, and OCF to improve francois.bouvignies@ubs.com