China's Top Chip-Tool Maker AMEC Sees Profit Quadruple Amid US Sanctions

Advanced Micro-Fabrication Equipment China (AMEC), the country’s top chip-tool maker, says its preliminary profit will nearly quadruple in the first half of the year as robust demand for home-grown semiconductors continues amid US sanctions.

Based on unaudited figures, the company said its income between January and June was at least 2.7 billion yuan (US$400 million), representing a year-on-year growth of 282 per cent, according to a filing to the Shanghai Stock Exchange on Monday. The upper limit of profit growth could reach 311 per cent, which would translate into a net profit of 2.9 billion yuan. Revenue for the period rose 35 per cent from a year earlier to 6.7 billion yuan.

The staggering profit growth was partly driven by nearly 2 billion yuan in investment and fair-value gains, including the sale of shares in fellow equipment maker Piotech earlier this year. Nevertheless, the adjusted profit excluding the gains doubled during the first half. AMEC shares closed up 2.55 per cent in Shanghai on Tuesday, while the semiconductor equipment index, compiled by Wind to track more than 20 mainland-listed firms, advanced more than 7.61 per cent.