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ACM Research announces dividend and financial outlook

Published 20/06/2024, 21:54
ACMR
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FREMONT, CA - ACM Research, Inc. (NASDAQ:ACMR), a provider of wafer-processing solutions for semiconductor and advanced wafer-level packaging applications, disclosed in a recent SEC filing that its primary operating subsidiary, ACM Research (Shanghai), Inc., conducted its Annual Stockholder Meeting on Monday. At the meeting, several key resolutions were passed, including the approval of a significant dividend payout and the adoption of a financial budget plan for 2024.

The approved dividend amounts to approximately RMB 273.2 million ($37.7 million), which is expected to be distributed to ACM Shanghai's stockholders by the end of the year. ACM Research, Inc. holds a majority stake of 82.1% in ACM Shanghai. However, the exact net amount and timing for the repatriation of the dividend proceeds to the United States remain uncertain.

In addition to the dividend, ACM Shanghai's stockholders approved a financial budget plan for the upcoming year. The plan anticipates revenue growth between 29% to 49% and a rise in research and development expenses estimated to be between 22% and 58%. These projections are based on Chinese generally accepted accounting principles and are indicative of the company's growth trajectory in the Chinese market.

In other recent news, ACM Research has announced a substantial increase in its Q1 2024 earnings. Revenues skyrocketed to $152.2 million, marking a 105% rise from the same period last year, driven primarily by significant growth in single wafer and semi-critical cleaning products. The company's gross margins also exceeded expectations, reaching 52.5%, well beyond the target range of 40-45%.

ACM Research has confirmed its 2024 revenue outlook, projecting revenues between $650 and $725 million. The firm's cash and cash equivalents total $288.3 million, with a full-year capital expenditure forecast of approximately $100 million.

InvestingPro Insights

Investors following ACM Research, Inc. (NASDAQ:ACMR) can gain a clearer picture of the company's financial health with key metrics from InvestingPro. With a market capitalization of $1.43 billion, ACMR is trading at a P/E ratio of 15.84, which is reasonable when aligned with its near-term earnings growth. The company's strong revenue growth of over 51% in the last twelve months as of Q1 2024, coupled with a robust gross profit margin of 49.61%, highlights its profitability and efficiency in operations.

ACMR's significant price appreciation over the last year, with a total return of 105.02%, reflects investor confidence in its performance and market position. Additionally, the company's solid balance sheet is illustrated by InvestingPro Tips, which highlight that ACMR holds more cash than debt and has liquid assets that exceed its short-term obligations. Moreover, analysts predict the company will be profitable this year, a sentiment backed by its profitability over the last twelve months.

For those considering a deeper dive into ACM Research, Inc., there are 11 additional InvestingPro Tips available, which could provide further insights into the company's potential. As an incentive, users can use the coupon code PRONEWS24 to get an additional 10% off a yearly or biyearly Pro and Pro+ subscription, unlocking valuable analytics that could inform investment decisions.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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