Goldman Sachs maintains Buy on Anji Micro as advanced products and broader coverage drive growth

Overview

This is a Goldman Sachs company research report on Anji Micro (688019.SS). The report is based on the company’s 4Q25/1Q26 earnings call and focuses on product expansion, gross margin outlook, and overseas market progress. Goldman Sachs maintains a Buy rating, arguing that the company has broader coverage in cmp slurry and wet chemicals while extending into new materials and advanced applications, and can benefit from AI-driven growth in semiconductor materials consumption and localization trends.

Core views

Key views include three points: first, the company continues to expand cmp slurry and wet chemicals into new materials, advanced applications, and broader customer deployment, with global market shares in 2025 of 13% and 6%, respectively; second, short-term gross margins are affected by the product mix of over 100 semiconductor material solutions and ramp-up of specific products, but the long-term average gross margin remains stable, with wet chemicals margin improvement driven by scale and a higher share of high-end products; third, the company still prioritizes the China market while maintaining deep cooperation with overseas customers, and overseas expansion is progressing.

Analysis framework

The report combines information from the company’s earnings calls, company data, Goldman Sachs forecasts, and FactSet data, analyzing product line expansion, profitability, geographic revenue mix, and valuation through both top-down and company-fundamentals perspectives. Valuation uses a 12-month target price framework, with an Rmb381 target supported by a 36.3x 2027E target P/E.

Methodology notes

• Valuation methodsTarget P/E Method

  36.3x 2027E target P/E

  Goldman Sachs derives Anji Micro’s 12-month target price of Rmb381 based on 2027E earnings forecasts using a 36.3x target P/E.

• Factor analysisGS Factor Profile

  Growth, financial returns, valuation multiples, and composite factor

  Goldman’s factor framework compares the company’s growth, financial returns, and valuation multiples against the market and peers through normalized rankings, and combines growth, financial returns, and inverse valuation multiple into a composite percentile.

• M&A scenarioM&A Rank

  M&A likelihood grading

  Goldman uses a 1-to-3-tier M&A score to assess takeover probability, but this report does not indicate that this factor is a core driver of Anji Micro’s target price.

Asset mapping & comparison

Structured mapping from thesis to named assets (strengths, weaknesses, peers, risks).

• Anji Micro (688019.SS)

  Core coverage subject

  Strengths

  Strong R&D capability, broader coverage of cmp slurry and wet chemicals, and ongoing expansion into ecp, advanced packaging, and new material applications, with growth logic supported by substitution demand and AI-driven demand.

  Weaknesses

  Revenue is heavily concentrated in mainland China, and commercialization of some new products requires customer qualification and implementation time.

  Comparison

  The report compares the company with Goldman Sachs’ global coverage and industry peers using factor metrics, but no specific peer names or quantitative rankings are disclosed in the text.

  Risks

  Supply chain risks, semiconductor customer demand being weaker than expected, and product expansion underperforming expectations.

Key data

• 12-month target priceRmb381Based on a 36.3x 2027E target P/E.
• RatingBuyThe report explicitly maintains a Buy rating.
• 2025 global cmp slurry market share13%Stated by management on the earnings call.
• 2025 global wet chemicals market share6%Stated by management on the earnings call.
• Gross margin range from 1Q25 to 1Q2655%~57%The company’s gross margin was affected by product mix and ramp-up of specific products.
• 2025 mainland China revenue shareAbove 96%The company still treats the China market as the priority for serving customer demand.
• Years of overseas customer serviceMore than 10 yearsThe company’s products have entered both overseas and mainland China production sites of overseas customers.
• Latest table closing priceRmb257.90The target price history table shows a target price of Rmb381 and closing price of Rmb257.90 as of 28-Apr-26.

Impact & implications

If the company continues to upgrade its product mix in advanced nodes, advanced packaging, and high-end wet chemicals, profitability is likely to improve. At the same time, AI demand and localization trends may drive higher semiconductor materials consumption. Overseas customer partnerships provide incremental mid- to long-term growth, while near-term revenue remains highly concentrated in mainland China.

Risks

• Supply chain risks.
• Semiconductor customer demand weaker than expected.
• Product expansion weaker than expected.
• Competition intensifying in specific products may affect pricing or the pace of penetration.
• Overseas expansion progress may be affected by customer qualification cycles and regional demand shifts.

What to watch

• Ramp-up and customer penetration progress of ecp Damascus solutions.
• Changes in the mix share of higher-end wet chemicals and advanced packaging solutions.
• Whether gross margins after 1Q26 improve with product mix upgrades.
• Conversion of orders for specific wet chemical products by overseas customers.
• The persistence of AI and localization trends in driving semiconductor material demand.