AccoTest (688200.SS): STS8600 in expansion; riding on growing local GPU; Neutral

As we highlighted in our CHIPS 4 report, we expect China semi capex to grow at 13% / 15% / 15% in 2026-28E and reach US$68bn in 2028E, supporting China WFE spending to grow at 13% / 20% / 15% in 2026-28E and reflecting our positive view on China SPE players' revenue growth ahead. We see rising SPE demand from local major foundries, IDM, and OSAT players, supported by the migration towards advanced node and capacity expansion for the growing AI related end demand. Accotest has started small volume shipments of STS8600 testing tool, with continuous product verification with local CPU and GPU clients, which would support the shipments ramp up in coming years, in our view. We expect Accotest's 3Q26E revenue to grow at +27% YoY / +10% QoQ to Rmb512m, supported by testing equipment shipments growth, with GM remaining QoQ flat at 74%, considering the largely unchanged product mix. We raise our STS8600 shipment estimates in 2027-28E, considering the company's strong orders on hand and client b