E-Town Semis (688729.SS)：蚀刻与表面处理设备驱动下一阶段增长

We remain positive on E-Town, riding on memory and advanced-node capacity expansion in China and the ongoing localization of semiconductor equipment. We expect the company's leading positions in dry strip and rapid thermal processing (RTP) to support its core business, while etcher and plasma surface treatment tools drive the next stage of growth. In particular, RENA-E is expected to ramp up in 2027E-28E, alongside the customer verification of new metal/aluminum etch and wafer-edge etch tools. Continued supply chain localization and qualification progress should also support the company's profitability improvement. Maintain Neutral on fair valuation. We keep 2027-28E net income largely unchanged, with revenues slightly cut by 1% on average. Our 2026E net income is reduced by 9% mainly on lower revenues and higher R&D expenses. We continue to expect strong revenue growth at 55%/16% YoY in 2027/28E.