E-Town Semis (688729.SS): China AI Tour: Factory visits: Etcher and surface treatment tools to drive next-stage growth

We visited E-Town's factory and hosted the management on Sep 10 in Beijing during our China AI Tour. Key discussions focused on the company's revenue and order outlook, as well as its new product expansion in etcher and surface treatment equipment. Management remains positive on revenue growth in 2H26 and 2027, and highlighted etcher and surface treatment as company's key new product focus. We remain positive on the China Semi supply chain, riding on rising memory and advanced node capacity expansion and the generative AI trend supporting China semis ecosystem development. In 1H26, memory customers remain the major contributor of their orders, followed by logic and specialty foundry customers;