AMEC (688012.SS): New tools launched in etching and deposition; Memory and Advanced nodes tools to drive growth ahead; Buy

We are positive on AMEC's growth outlook, driven by (1) solid semiconductor equipment demand from memory and advanced logic customers in China, (2) rising local equipment penetration, and (3) the company's continued product expansion from etching into deposition and adjacent equipment categories. We expect AMEC's revenues to grow by 28% / 31% QoQ to Rmb4,819mn / Rmb6,306mn in 3Q26E / 4Q26E. As highlighted in our CHIPS IV report, we estimate China WFE spending to grow by 13% / 20% / 15% YoY in 2026E-28E to US$61bn by 2028E, benefiting leading semiconductor equipment suppliers including AMEC. At CSEAC 2026, AMEC launched six new tools covering extreme high-aspect-ratio etching, dielectric-film deposition, molybdenum ALD, integrated metal-film deposition and SiC epitaxy. We believe the expanded portfolio broadens AMEC's process coverage and could increase its equipment content per customer and production line. Maintain Buy.