688012 (Advanced Micro-Fabrication Equipment Inc China) vs Shanghai Composite comparison

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Back to Advanced Micro-Fabrication Equipment Inc China Analysis

Advanced Micro-Fabrication Equipment Inc China
Glance View

Market Cap

112.8B CNY

Industry

Semiconductors

In the bustling technological landscape of China, Advanced Micro-Fabrication Equipment Inc. (AMEC) stands as a pivotal player driving innovation in the semiconductor industry. Founded in 2004, the company has carved a niche for itself by designing and manufacturing high-precision equipment used in the intricate processes of chip production. AMEC's journey is one of innovation and adaptation, developing cutting-edge tools that enable semiconductor manufacturers to produce smaller and more efficient chips. As the industry advances toward increasingly complex processes, AMEC provides crucial etching and deposition equipment, reaching deep into the heart of the microfabrication process. By focusing on the creation of these essential tools, AMEC plays a critical role in the global supply chain that fuels modern technology, from smartphones to supercomputers. The company's business model is deeply interwoven with the growth trajectories of semiconductor giants both within China and globally. AMEC generates revenue primarily through the sale of its specialized fabrication equipment, which finds its place among the production lines of industry leaders such as TSMC and SMIC. Moreover, the company benefits from ongoing service agreements, upgrades, and maintenance of the equipment they supply, ensuring a consistent revenue stream. This approach not only solidifies AMEC's financial footing but also strengthens its relationships with its clients, as it becomes an indispensable partner in their production processes. In an era where the demand for advanced semiconductors is surging, AMEC's strategic alignment with key industry trends positions it effectively for sustained growth, making it a critical player in the ongoing evolution of the semiconductor landscape.

View Advanced Micro-Fabrication Equipment Inc China Analysis

Intrinsic Value

What is Intrinsic Value?

Economic Moat is a concept popularized by Warren Buffett to describe a company's durable competitive advantage. It represents the 'moat' that protects a company from competitors and helps it sustain profitability over the long term. Our analysis of the past 10 years showed that companies with a wide economic moat significantly outperformed the market, delivering +645% returns compared to +189% for the S&P 500.

Our research into Economic Moat performance spans the past 10 years and focuses on companies with a wide economic moat. For this analysis, we calculated the average stock price returns of these companies, comparing them to the performance of the S&P 500 index over the same period.

The results were compelling: wide moat stocks achieved a remarkable +645% average return, compared to +188% for the broader market. This difference highlights the long-term benefits of investing in businesses that can maintain their market position and pricing power over time.

Note: This research does not account for survivorship bias. Past performance is not indicative of future results.

Determining whether a company has an economic moat requires both a deep dive into financial metrics and a qualitative assessment of its competitive position. Our analysts conduct a rigorous evaluation that focuses on identifying structural advantages that enable a company to sustain profitability and defend its market share over the long term.

The process begins with an analysis of a company’s historical financial performance. We assess how consistently the company has generated returns above its cost of capital and whether those returns have been stable or improving. However, financial performance alone doesn’t reveal the full picture. To understand the sources of these advantages, we evaluate five key drivers of economic moats:

Network Effect: We analyze whether the value of a company’s product or service grows as its user base expands. Platforms like payment systems or marketplaces benefit from this self-reinforcing.

Switching Costs: We assess whether customers face significant costs or disruptions when switching to a competitor’s product or service. High switching costs create customer stickiness and provide pricing power.

Intangible Assets: Strong brands, patents, and regulatory licenses can protect a company’s market position by creating barriers for competitors or enabling premium pricing. For example, a well-recognized consumer brand may command higher customer loyalty and margins.

Efficient scale: Occurs when a market is optimally served by one or a few players, making it unprofitable for new entrants to compete. This typically happens in industries with high fixed costs or geographic constraints, such as utilities or pipelines.

Cost Advantage: Companies with structural cost advantages can produce goods or services at a lower cost than their competitors, enabling them to offer competitive pricing or maintain higher margins. These advantages often arise from economies of scale, superior supply chain management, or proprietary technology. Firms like Walmart leverage their massive scale to negotiate better terms with suppliers, allowing them to undercut competitors on price.

By examining these factors in combination with a company’s financial performance and market positioning, we classify each company into one of three categories:

This rigorous evaluation ensures that our moat ratings are both comprehensive and reliable, giving investors the tools they need to make well-informed, long-term decisions.

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CN		NAURA Technology Group Co Ltd SZSE:002371	Add

US	B	Brooks Automation Inc LSE:0HQ1	Select
NL		ASML Holding NV AEX:ASML	Select
US		Applied Materials Inc NASDAQ:AMAT	Select
US		Lam Research Corp NASDAQ:LRCX	Select
US		KLA Corp NASDAQ:KLAC	Select
JP		Tokyo Electron Ltd TSE:8035	Select
JP		Advantest Corp TSE:6857	Select
JP		Disco Corp TSE:6146	Select
NL		ASM International NV AEX:ASM	Select
CN		NAURA Technology Group Co Ltd SZSE:002371	Select

US	B	Brooks Automation Inc LSE:0HQ1	Add
NL		ASML Holding NV AEX:ASML	Add
US		Applied Materials Inc NASDAQ:AMAT	Add
US		Lam Research Corp NASDAQ:LRCX	Add
US		KLA Corp NASDAQ:KLAC	Add
JP		Tokyo Electron Ltd TSE:8035	Add
JP		Advantest Corp TSE:6857	Add
JP		Disco Corp TSE:6146	Add
NL		ASM International NV AEX:ASM	Add
CN		NAURA Technology Group Co Ltd SZSE:002371	Add

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688012

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Shanghai Composite

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688012 vs Shanghai Composite

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688012 vs Shanghai Composite

Performance By Year
688012 vs Shanghai Composite

Advanced Micro-Fabrication Equipment Inc China
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688012 vs Shanghai Composite

Stocks Performance 688012 vs Shanghai Composite

Performance Gap 688012 vs Shanghai Composite

Performance By Year 688012 vs Shanghai Composite

Advanced Micro-Fabrication Equipment Inc China Glance View

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688012

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Shanghai Composite

Stocks Performance
688012 vs Shanghai Composite

Performance Gap
688012 vs Shanghai Composite

Performance By Year
688012 vs Shanghai Composite

Advanced Micro-Fabrication Equipment Inc China
Glance View