$ACM Research (ACMR.US)$In the March 2022 analysis, due to t...

Launched in 2017, it is mainly engaged in the epistar cleaning equipment business. 97% of the market is in mainland China, and the current price is 32.71.

Revenue has continued to grow over the past 5 years, with an average growth rate of 49.4%, an average growth rate of 71.4% in operating profit, and an average growth rate of 71.3% in net profit. Interest expenses will be converted to interest income starting in 2022, and there is no interest burden. The gross margin increased from 47.1% to 49.5% in the past 5 years, the return on net assets fell from 25.2% to 5.8%, and rose again to 10.7% in 2023.

The balance ratio has declined from 55.3% to 37.9% in the past 5 years, and the ratio and growth rate of accounts receivable and inventory are very abnormal.

Inventories have increased by about 150 million each year in the past 3 years, but net profit has increased from 43 million to 97 million in the past 3 years, not exceeding 100 million in a year. Currently, 550 million inventory is almost equivalent to 560 million yuan in revenue in 2023.

Accounts receivable have increased by a cumulative total of 260 million in the past 3 years, while net profit in the past 3 years was only 190 million. This can also be seen from the large net net outflow of cash flow from operating operations in the past 3 years.

These two data are sufficient to show that the company has major problems with its operation and lacks investment value for the time being.