# Advanced Micro Fabrication (688012.SHG)

Canonical: https://gigainvestors.com/s/688012.SHG

Analysis as of: 2026-10-16T07:34:03.097Z. Financial observations: FY2016–FY2025.

Listing currency: CNY. Reporting currency: CNY.

## Verdict

Not a wonderful business

Quality tests for Buy: not passed (profit record: pass; earnings resilience is evidence only). Published buy qualification: no.

Share price: CNY 297.67 per share; close as of 2026-10-15.

Estimated value: low CNY 39.27 per share, central CNY 43.23 per share, high CNY 48.49 per share. Buy at or below the central value CNY 43.23 per share. Valuation as of 2026-10-16T07:34:03.097Z; scenarios are not confidence intervals.

Expected annual return: 3.8% at the stated quote. About 3.8% a year at today's price (required return 10.0%). required return 10.0% a year (10% floor; CN 10-year bond 1.7% + 4 points).

## Checklist

### understandable: fail

- 0 revenue declines in the last 10 years (informational)

- operating margin variation exceeds 0.35

- Financial history: 10 years

- Years with declining revenue: 0

- Years with a net loss: 1

- Operating margin variation: 2.09×

Chart: Operating margin; fiscal year observations.

- FY2016: -0.58×

- FY2017: 0.05×

- FY2018: 0.09×

- FY2019: 0.10×

- FY2020: 0.23×

- FY2021: 0.36×

- FY2022: 0.27×

- FY2023: 0.32×

- FY2024: 0.19×

- FY2025: 0.18×

### moat: fail

- Years with nonpositive invested capital use equity plus debt and leases; positive earnings with no positive capital are shown above 100%.

- ROIC median below threshold

- ROIC worst years below threshold (more than 1 bad year allowed)

- ROIC, median of available years: 13.8%

- ROIC, second-lowest year: 6.3%

- Typical minus recent gross margin: -2.5 pp

- Typical gross margin (annual median): 40.5%

- Recent gross margin (lower of latest and 3-year median): 43.0%

- Years with nonpositive capital: 1

- Capital spending / revenue: 9.8%

- ROIC including acquisitions, ten-year median: 13.4%

Chart: ROIC excluding acquisitions; fiscal year observations.

- FY2016: 0.0%

- FY2017: 8.2%

- FY2018: 6.3%

- FY2019: 13.1%

- FY2020: 28.4%

- FY2021: 36.3%

- FY2022: 20.4%

- FY2023: 18.7%

- FY2024: 13.6%

- FY2025: 14.0%

### economics: fail

- owner earnings cash conversion below threshold

- Owner earnings / net income, 5-yr: 0.77×

- Cash conversion uses consolidated totals: No

- Owner earnings, five-year total: CNY 5.9B

- Net income, five-year total: CNY 7.7B

- Return on incremental invested capital: 21.5%

- Working capital / revenue, annual change: -1.7 pp

- Working capital / revenue, change between three-year averages: -15.2 pp

- Working capital / revenue, final three-year average: 67.2%

Chart: Annual owner cash / profit; fiscal year observations.

- FY2021: 0.71×

- FY2022: 0.03×

- FY2023: 0.79×

- FY2024: 1.00×

- FY2025: 1.00×

### management: pass

- buybacks unrelated to price (informational)

- ROIC first 3 years vs last 3 years: 6.3% vs 14.0%

- Per-share earnings: 0.02 to 1.93 (three-year endpoint medians)

- Management verdict uses per-share economic progress: Yes

- Ordinary dilution, 5-year annual growth: 11.5%

- Diluted shares, 5-year annual growth: 11.5%

- Per-share value growth: 97.5%

- Per-share value change: CNY 1.92

- Per-share value, starting three-year median: CNY 0.02

- Per-share value, ending three-year median: CNY 1.93

- Average buyback yield: 0.3%

- Buyback history: 1 years

- Debt-funded buybacks: No

- Cumulative net income, 10 years: CNY 8.3B

- ROIC, first three-year median: 6.3%

- ROIC, last three-year median: 14.0%

Chart: Earnings per share; fiscal year observations.

- FY2016: CNY -0.19

- FY2017: CNY 0.02

- FY2018: CNY 0.19

- FY2019: CNY 0.35

- FY2020: CNY 0.91

- FY2021: CNY 1.67

- FY2022: CNY 1.28

- FY2023: CNY 1.93

- FY2024: CNY 1.74

- FY2025: CNY 2.26

### accounting: pass

- stock compensation exceeds 15% of operating cash flow

- Sloan accruals: -0.6%

- Receivables to sales index (DSRI): 0.98×

- Restructuring years, last five: 0

- Stock compensation / operating cash flow: 22.3%

- Earnings backed by cash: Yes

- Operating cash / earnings: 1.09×

- Accounting red flags: 1

- Goodwill and intangibles / equity: 0.12×

Chart: Sloan accruals; fiscal year observations.

- FY2016: -12.7%

- FY2017: 7.9%

- FY2018: -4.8%

- FY2019: 1.2%

- FY2020: -6.1%

- FY2021: -0.0%

- FY2022: 2.8%

- FY2023: 8.8%

- FY2024: 0.6%

- FY2025: -0.6%

## Holders

## Price story

Down 36% since Jun 2026 · sales +36.6%

Story as of 2026-10-16T09:59:58.898Z; price observation 2026-10-15.

Price needs cash profits to grow 29.2% a year for ten years

### Sales · FY2024–2025

sales +36.6%; source https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/; observed 2026-10-16.

- FY2016: CNY 610M 

- FY2017: CNY 972M 

- FY2018: CNY 1.6B 

- FY2019: CNY 1.9B 

- FY2020: CNY 2.3B 

- FY2021: CNY 3.1B 

- FY2022: CNY 4.7B 

- FY2023: CNY 6.3B 

- FY2024: CNY 9.1B 

- FY2025: CNY 12B 

### Gross margin · FY2024

gross margin 39.1%; source https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/; observed 2026-10-16.

- FY2016: 42.0% 

- FY2017: 38.2% 

- FY2018: 34.8% 

- FY2019: 32.4% 

- FY2020: 37.4% 

- FY2021: 42.9% 

- FY2022: 44.9% 

- FY2023: 43.0% 

- FY2024: 39.1% 

## Owner memo

Memo as of 2026-10-16T08:06:05.509Z.

### How it makes money

Operates in semiconductor equipment & materials; annual sales are CNY 12.4 billion.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:34:03.097Z); FY2025: revenue 12384638000; grossProfit 12384638000; margin = grossProfit / revenue.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16); 688012.SHG: Advanced Micro-Fabrication Equipment Inc. China engages in the research and development, manufacture, and sale of high-end semiconductor equipment and related semiconductor equipment in China, Taiwan, and internationally. The company offers etch products, including Primo D-RIE, Primo AD-RIE, Primo SSC AD-RIE, Primo iDEA, Primo HD-RIE, Primo TSV, Primo Nanova, Primo Twin-Star, and Primo UD-RIE; and MOCVD products, such as Prismo D-BLUE, Prismo A7, Prismo HiT3, and Prismo UniMax. It also provides Preforma Uniflex CW system, a CVD metal-tungsten deposition equipment; and Volatile Organic Compounds (VOC) air purifier for industrial use. Advanced Micro-Fabrication Equipment Inc. China was founded in 2004 and is headquartered in Shanghai, the People's Republic of China.

### Why customers stay

Margins ranged from 39.1% to 100% during 2023–25; it earns 13.8% on its capital.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:34:03.097Z); FY2023: grossProfit / revenue = 43%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:34:03.097Z); FY2024: grossProfit / revenue = 39.1%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:34:03.097Z); FY2025: grossProfit / revenue = 100%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:34:03.097Z); 10-year return on capital observations [[2016,0],[2017,0.08181016629177577],[2018,0.06299692016277371],[2019,0.13078769582404234],[2020,0.2836724158140631],[2021,0.3629710653042312],[2022,0.20408380562863357],[2023,0.18707830075180132],[2024,0.13552204014665528],[2025,0.13958307044841378]]; median 0.13755255529753452. ROIC follows the displayed moat series; financial companies use return on tangible equity.

### Can it raise prices

Kept about a 45% gross margin through 2022 cost inflation.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:34:03.097Z); Gross margin observations: [[2021,0.42945196651755185],[2022,0.44921140107055174],[2023,0.4298138982513687]]; range within 2 percentage points.

### Where the cash goes

Spends 35.1% of cash earnings on expansion; earns 21.5% on new investment.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:34:03.097Z); FY2017: growth capex 3846526.8099999987; upkeep 14479223; owner earnings 29918662. Growth capex / owner earnings = 0.12856613741617184.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:34:03.097Z); FY2018: growth capex 10864095.8; upkeep 20430332; owner earnings 90869246. Growth capex / owner earnings = 0.11955745511523229.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:34:03.097Z); FY2019: growth capex 17134208.729999997; upkeep 27781465; owner earnings 188564221. Growth capex / owner earnings = 0.09086670121793676.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:34:03.097Z); FY2020: growth capex 51340796.1490663; upkeep 200448891.8209337; owner earnings 369689532.1790663. Growth capex / owner earnings = 0.1388754392001513.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:34:03.097Z); FY2021: growth capex 111133118.47895944; upkeep 385397567.47104055; owner earnings 719522272.4029595. Growth capex / owner earnings = 0.15445403532515076.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:34:03.097Z); FY2022: growth capex 248834564.61137223; upkeep 1256282701.6086278; owner earnings 29302743.161372185. Growth capex / owner earnings = 8.491852221514671.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:34:03.097Z); FY2023: growth capex 341255987.6671416; upkeep 529199815.5728584; owner earnings 1414317594.8591416. Growth capex / owner earnings = 0.24128667345125468.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:34:03.097Z); FY2024: growth capex 781499758; upkeep 113562324; owner earnings 1613476941.702. Growth capex / owner earnings = 0.48435756210784364.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:34:03.097Z); FY2025: growth capex 741364685.6; upkeep 113562324; owner earnings 2110499212.902. Growth capex / owner earnings = 0.35127456151978437.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:34:03.097Z); Incremental return on capital 0.21508075458311465, from the economics test's unchanged annual inputs.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:34:03.097Z); Dividend observations: [[2016,13961343.83],[2017,14432520.61],[2018,12285639.48],[2019,887376.73],[2020,260774.82],[2021,0],[2022,3300000],[2023,137589704],[2024,200343889],[2025,205051212.9]]. Zero only counted when supported by a complete cash-flow statement.

### Are managers owners

Insiders own 21.2% of the company.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16); 688012.SHG SharesStats.PercentInsiders = 21.159 percentage points; cache date 2026-10-16.

### What the price says

The price assumes cash profits grow 29.2% yearly over ten years.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:34:03.097Z); Ten-year compound average after fade. Initial solved rate 0.4150610042425952. Price 297.67; FX 1; discount 0.1; same standard ten-year fade to terminal 0.03.  Closing-price date 2026-10-15.

## Monthly share-price history (CNY per share)

- 2019-08: CNY 47.46 per share

- 2019-09: CNY 46.21 per share

- 2019-10: CNY 45.37 per share

- 2019-11: CNY 44.84 per share

- 2019-12: CNY 62.01 per share

- 2020-01: CNY 123.07 per share

- 2020-02: CNY 108.46 per share

- 2020-03: CNY 92.48 per share

- 2020-04: CNY 112.79 per share

- 2020-05: CNY 145.71 per share

- 2020-06: CNY 147.19 per share

- 2020-07: CNY 147.91 per share

- 2020-08: CNY 124.55 per share

- 2020-09: CNY 114.20 per share

- 2020-10: CNY 108.71 per share

- 2020-11: CNY 99.60 per share

- 2020-12: CNY 105.77 per share

- 2021-01: CNY 103.05 per share

- 2021-02: CNY 83.72 per share

- 2021-03: CNY 72.15 per share

- 2021-04: CNY 79.73 per share

- 2021-05: CNY 87.79 per share

- 2021-06: CNY 111.36 per share

- 2021-07: CNY 154.29 per share

- 2021-08: CNY 110.64 per share

- 2021-09: CNY 101.88 per share

- 2021-10: CNY 104.83 per share

- 2021-11: CNY 107.40 per share

- 2021-12: CNY 84.97 per share

- 2022-01: CNY 79.67 per share

- 2022-02: CNY 85.96 per share

- 2022-03: CNY 78.15 per share

- 2022-04: CNY 70.47 per share

- 2022-05: CNY 77.48 per share

- 2022-06: CNY 78.36 per share

- 2022-07: CNY 81.44 per share

- 2022-08: CNY 82.67 per share

- 2022-09: CNY 72.40 per share

- 2022-10: CNY 74.49 per share

- 2022-11: CNY 66.04 per share

- 2022-12: CNY 65.78 per share

- 2023-01: CNY 70.40 per share

- 2023-02: CNY 70.67 per share

- 2023-03: CNY 99.00 per share

- 2023-04: CNY 121.78 per share

- 2023-05: CNY 116.34 per share

- 2023-06: CNY 105.00 per share

- 2023-07: CNY 95.85 per share

- 2023-08: CNY 102.24 per share

- 2023-09: CNY 101.04 per share

- 2023-10: CNY 114.87 per share

- 2023-11: CNY 114.03 per share

- 2023-12: CNY 103.09 per share

- 2024-01: CNY 76.55 per share

- 2024-02: CNY 98.52 per share

- 2024-03: CNY 100.20 per share

- 2024-04: CNY 95.08 per share

- 2024-05: CNY 87.08 per share

- 2024-06: CNY 94.81 per share

- 2024-07: CNY 105.50 per share

- 2024-08: CNY 90.64 per share

- 2024-09: CNY 110.07 per share

- 2024-10: CNY 129.15 per share

- 2024-11: CNY 148.99 per share

- 2024-12: CNY 126.95 per share

- 2025-01: CNY 120.87 per share

- 2025-02: CNY 137.09 per share

- 2025-03: CNY 123.73 per share

- 2025-04: CNY 126.35 per share

- 2025-05: CNY 117.46 per share

- 2025-06: CNY 122.35 per share

- 2025-07: CNY 132.63 per share

- 2025-08: CNY 143.74 per share

- 2025-09: CNY 200.66 per share

- 2025-10: CNY 187.49 per share

- 2025-11: CNY 179.93 per share

- 2025-12: CNY 183.03 per share

- 2026-01: CNY 233.52 per share

- 2026-02: CNY 236.68 per share

- 2026-03: CNY 205.62 per share

- 2026-04: CNY 252.55 per share

- 2026-05: CNY 297.68 per share

- 2026-06: CNY 468.50 per share

- 2026-07: CNY 344.00 per share

- 2026-08: CNY 362.00 per share

- 2026-09: CNY 318.55 per share

- 2026-10: CNY 305.24 per share

## Annual estimated value (CNY per share)

- FY2020: low CNY 7.32 per share, central CNY 7.67 per share, high CNY 8.13 per share

- FY2021: low CNY 23.78 per share, central CNY 24.53 per share, high CNY 25.53 per share

- FY2022: low CNY 16.56 per share, central CNY 17.31 per share, high CNY 18.31 per share

- FY2023: low CNY 21.61 per share, central CNY 23.27 per share, high CNY 25.48 per share

- FY2024: low CNY 28.13 per share, central CNY 30.76 per share, high CNY 34.26 per share

- FY2025: low CNY 34.33 per share, central CNY 37.88 per share, high CNY 42.60 per share

Historical values use today's bond yield for every fiscal year

Historical values use today's FX rate into trading currency for every fiscal year

Historical values use current restated fundamentals and current commodity classification; they are not point-in-time estimates

Prior published observations retained from 2026-10-15T06:39:49.000Z where newer inputs omit a numeric field or fiscal period.

## Sources

Estimates depend on assumptions and are not guarantees or investment advice. Underlying data remains subject to its source licenses; public reading does not grant bulk redistribution rights.