On August 7, Shengmei Shanghai (688082.SH) released its financial report for the first half of 2026. According to the data, the company's revenue for the first half of the year was 3,718 billion yuan (RMB, same below), up 13.87% year on year, and net profit to mother was 989 million yuan, up 42.14% year on year.
Specifically, in the second quarter, Shengmei Shanghai's revenue was 2,242 billion yuan, up 14.40% year on year, and net profit after deducting non-return to mother was 465 million yuan, up 9.08% year on year, achieving both revenue and net profit growth.
If you disassemble this financial report, it is easy to find that Shengmei Shanghai is at the starting point of a new round of rapid growth — this impressive report not only confirms that Shengmei Shanghai's platform-based strategy has entered an inflection point from layout to implementation. The company α is expected to resonate with industry beta to drive the explosion of growth, and clearly indicates to the market that the present is a key window for long-term layout and sharing the company's high growth dividends.
The platform-based strategy has become the core growth pole, and the accelerated release of performance highlights growth resilience
Looking at Shengmei Shanghai's financial report, it can be seen that the double increase in revenue and profit is only apparent. A number of details that are easily overlooked by the market are the keys to highlighting the “gold content” of this financial report. Among them, none is more prominent than Shengmei Shanghai's platform-based strategy, which reached a critical inflection point during the reporting period, and the financial side verified the success of de-standardization for the first time.
According to Shengmei Shanghai's 2026 semi-annual results conference, during the reporting period, the company achieved the first growth curve of 2,259 billion yuan in revenue, mainly cleaning equipment, and the second growth curve, which mainly featured ECP electroplating equipment, furnace tube equipment and other front-end equipment. Revenue jumped 36.29% year-on-year to 1,102 billion yuan, accounting for 29.63% of total revenue. This explosive growth stems from dual momentum: on the one hand, ECP electroplating chamber shipments broke through the milestone of 2,000 cavities, marking that the technology has officially entered an accelerated emission curve; on the other hand, new categories such as furnace tubes have also entered a period of large-scale contribution.
Meanwhile, the third growth curve — revenue from advanced packaging equipment (excluding ECP electroplating equipment) and other back-end equipment increased 19.27% year-on-year to 358 million yuan, accounting for 9.62% of total revenue. This is mainly driven by a blowout in demand for accelerators, HBM, and 3D packaging under the wave of AI computing power. It also confirms that the company's forward-looking layout of advanced packaging platforms such as ECP electroplating, Track, and PECVD has begun to harvest.
Together, these major business lines formed the core engine of Shengmei Shanghai's performance growth during the reporting period, driving the company's overall revenue increase of 13.87% year-on-year in the first half of the year. The revenue share of non-cleaning equipment continued to rise during the reporting period, indicating that Shengmei Shanghai's revenue structure has successfully transformed from “excellent cleaning equipment” to “multi-pole drive”, platformization has been implemented from a strategic layout to a core growth pole at the financial level, and the diversified restructuring of the revenue structure has been completed.
Another highlight of this financial report is that business structural optimization drives a more steady growth rate. Looking back at 2025, due to the single dependence on cleaning equipment and the pace of revenue recognition, Shengmei Shanghai's quarterly revenue growth rate fluctuated relatively greatly. Entering 2026, with the release of platform-based strategic dividends, the new business line effectively hedged cyclical fluctuations of a single product, and the revenue side returned to a growth trajectory. Revenue growth rates in the first and second quarters were 13.06% and 14.40% respectively. It has maintained double-digit growth for two consecutive quarters and is trending at an accelerated pace. Obviously, the pace of performance release since 2026 has accelerated markedly and is more resilient.
Furthermore, another highlight of this financial report is the balance of “high R&D and stable profit.” In the first half of this year, the company spent 663 million yuan on R&D, accounting for 17.82% of current total revenue, an increase of 1.15 percentage points over the same period in 2025. On the premise of maintaining high R&D investment, Shengmei Shanghai's net profit for the second quarter was 465 million yuan, a record high in the second quarter, up 9.08% year on year, marking an inflection point for the profit side after being pressured in the first quarter.
This combination of “R&D investment growth and profit side restoration” confirms the strategic strength of Shengmei Shanghai's “long-term principle” — while fulfilling current profit growth, it has not reduced investment in long-term competitiveness, which is of great significance to the company's long-term stable development.
Company α perfectly resonates with industry beta, and H1's new orders double to verify high growth certainty
Looking at the extended cycle, Shengmei Shanghai's current high performance increase is not a phased pulse, but the beginning of a new growth cycle. Currently, industry beta and company α are in a rare resonance window. Shengmei Shanghai's future accelerated growth is extremely certain. The company's disclosure guidelines indicate that 2026's annual revenue will be 8.2 billion to 8.8 billion yuan, an increase of 20.83%-29.68% over the previous year, which is a direct confirmation of this highly deterministic growth logic.
Specifically, the beta support for the industry comes from the combined resonance of multiple factors. The first is the launch of China's WFE supercycle, which opens up three-year order visibility. The global semiconductor equipment industry has entered a supercycle. UBS expects global WFE (fab equipment expenditure) to increase from 147 billion to 247.5 billion US dollars in 2026-2028, with a compound annual growth rate of nearly 30%. China is also the core engine. Bernstein raised China's WFE forecast for 2026-2028 to $580/670/77 billion. Major storage companies in mainland China are aggressively expanding production, providing equipment vendors with a clearly visible 100-billion-level order pool for the next three years. More importantly, equipment revenue is usually about a year behind orders, which means that capital expenditure in 2026 will be concentrated into performance in 2027-2028, and it is currently still in the early to middle of dividend payment.
Second, the localization rate has increased steeply, and the pace of order fulfillment is significantly faster than expected. According to industry chain research, in May 2026, Changjiang Storage Phase III launched process bidding. The proportion of local equipment procurement exceeded 50%, and the localization rate of core processes exceeded 60%; the localization rate of next-generation development platforms is expected to exceed 40%. Changxin Technology began bidding in the second quarter of 2026, expanding production by 50,000 to 60,000 tablets throughout the year, purchasing corresponding equipment by US$5 to 6 billion, and clearly prioritizing the procurement of local equipment. In 2026, Storage Shuangxiong's total equipment purchases reached 55-63 billion yuan, bringing significant increases to local manufacturers.
The trend for fabs to prioritize procurement of local semiconductor equipment has shifted from “policy guidance” to “order driven,” and profit cashing has entered a substantial stage. The release of profit flexibility indicates that semiconductor equipment has moved away from the “policy alternative” position and has officially become the core procurement sequence for fabs to expand production, which will accelerate the increase in localization rates.
It can be seen from this that the beta dividend in this round of the semiconductor equipment industry is fundamentally different from the previous cycle: the demand side is underpinned by the global WFE super cycle, and the localization of supply-side equipment has switched from “policy guidance” to “order driven”. The resonance of multiple factors has jointly built the boom growth logic of the current round of the industry. More importantly, due to the delay in equipment revenue recognition, the peak of this round of dividend redemption is still in 2027-2028. Currently, it is still in the early to middle of the growth cycle, rather than a short-term pulsed market.
This industry-level dividend is most friendly to platform-based equipment vendors with multi-category layout capabilities — they can not only meet the demand for all types of equipment brought about by the expansion of storage and production, but also seize more share with mature technical reserves in the process of rapidly climbing the localization rate. Shengmei Shanghai, which has achieved breakthrough progress in platform-based development, is the core beneficiary of this dividend. Its own alpha attribute will further amplify the beta growth elasticity of the industry.
At the company's alpha level, Shengmei Shanghai, which has been proven to be the inflection point of platform-based technology, will usher in a recovery in cleaning equipment and a relay explosion of new businesses in various categories. Specifically, in terms of cleaning equipment, high-temperature SPM cleaning products are in the cycle transition period. They are ammunition for the next round of rebound in the cleaning business. At the same time, the Tahoe platform has expanded wet etching and monitoring film recycling, and has been adopted by many leading logic and storage customers. Cleaning equipment will maintain its growth trajectory in the second half of the year.
On the new business side, 2026 is a major year for ECP electroplating and furnace tubes to confirm revenue; looking ahead to 2027, subsequent new growth pipelines are not conceptual warm-up, but have all passed the R&D node and entered the certification and first order stage. Naturally, the revenue confirmation window will fall in 2027, succeeding the volume of ECP electroplating and furnace tubes in 2026.
Among them, in April of this year, the company's second PECVD equipment was officially launched and delivered to China's leading logic wafer manufacturing plant for final verification. The equipment uses a silicon carbon nitride (SiCn) film deposition process and is equipped with the world's first three-station rotary deposition architecture with independent intellectual property rights independently developed by the company, which can meet the strict process requirements of post-IC process applications and advanced packaging wafer-level bonding applications; during the June survey, Shengmei Shanghai stated that “PECVD is actively being negotiated with the two customers”, and the second equipment delivery verification is expected to continue in the second half of 2027 landing.
At the same time, vertical furnace tubes have expanded from LPCVD to oxidation furnaces, diffusion furnaces, and ALD equipment. Ultra-high temperature vertical furnace tubes and High-K ALD furnace tubes are being tested and adjusted on the company's Lingang test and development line to prepare for industrialization. The company's management said that the furnace tube product cycle will support growth in 2026 and beyond.
Furthermore, in terms of the glued imaging track, the first high-capacity KrF front-end gluing imaging equipment was delivered to China's head logic wafer manufacturer in September 2025. It is currently being verified, and production certification is expected to be completed by the end of 2026.
As the world's first commercial large-panel copper electroplating platform, horizontal panel-level electroplating is the company's strategic product line that began forward-looking layout five years ago. It has now won 510 x 515 mm mass production orders from existing customers in mainland China (expected to be delivered in the first half of 2027) and 310 x 310 mm evaluation orders from new Asian customers (expected to be delivered in the fourth quarter of 2026). The company is expected to be one of the first manufacturers to deliver horizontal panel level electroplating systems to multiple customers in multiple regions. The company is expected to be one of the first manufacturers to deliver horizontal panel level electroplating systems to multiple customers in multiple regions.
It can be seen from this that while cleaning equipment continues to grow and ECP electroplating equipment is being released at an accelerated pace, 2026 will become the “Big Year (Big Year)” for Shengmei Shanghai to enter the market. It is the inflection point of the company's new business from technical verification to commercial implementation — the four new business lines of PECVD, vertical furnace tubes, glue development track, and horizontal panel level electroplating will focus on completing the “launch - certification - first order” operation in 2026. 2027 will naturally enter the revenue confirmation period, forming a natural relay to the existing main business.
The certainty of this growth path has been pre-verified on the order side. The company clearly stated during the semi-annual results conference call on August 14 that new orders in the first half of the year increased 105% year-on-year, covering all product categories. Among them, new categories such as electroplating contributed significantly, directly supporting the high growth potential of the new business line and locking in strong certainty for future revenue volume.
Meanwhile, the explosive growth of orders and the deepening of platform-based strategies are winning continuous recognition from the capital market. Nomura Orient International Securities gave Shengmei Shanghai an “plus” rating on August 10. It predicts that the company's net profit will reach 1,910 billion yuan in 2026, an increase of 36.98% over 2025; UBS Securities maintains a “buy” rating. It believes that Shengmei Shanghai is the main beneficiary of the continued expansion of high-end logic and storage production lines. It is expected to achieve a compound revenue/profit growth rate of 30%/37% from 2025 to 2028. The current valuation is attractive.