Anji Micro (688019) Report Interpretation

Overview

Following meetings with management at SEMICON Taiwan, Goldman Sachs reiterates Buy on Anji Micro. The central view is that AI-related demand for advanced logic and memory should lift semiconductor-material demand, while a higher-end product mix and broader product portfolio support profitability and customer penetration.

Core views

Goldman Sachs hosted Anji Micro management at SEMICON Taiwan on September 4. Discussion centered on CMP slurry upgrades, semiconductor-customer demand, and the customer base. Management was positive on increasing capital expenditure by both memory and advanced-logic customers, as well as the move toward higher-end product specifications. Goldman Sachs links these trends to demand for Anji Micro's semiconductor materials and maintains a positive view on the company. The report emphasizes Anji Micro's coverage across CMP slurry and wet chemicals, including remover and Post-CMP cleaner products. Goldman Sachs expects profitability to improve as the product mix moves toward advanced nodes, and notes that the company is expanding into new materials and applications. Management indicated that suppliers can gain customer traction through products with distinctive features and comparable or better performance; Goldman Sachs therefore views Anji Micro's ability to provide qualified, reliable materials as important for penetration of global-tier customers. Customer diversification is another pillar of the thesis. Anji Micro has served overseas customers for more than 10 years, which management and Goldman Sachs view as evidence of research and development capability. At the same time, mainland China accounted for more than 96% of 2025 revenue and remains the company's priority market, while it continues deep cooperation with global-tier clients. Goldman Sachs sees this broad customer coverage as enabling the company to participate in semiconductor growth in China and overseas. Goldman Sachs reiterates Buy with a 12-month target price of Rmb509, versus a Rmb212.50 closing price on September 4, 2026, implying 139.5% upside. The target is based on 46x 2030E discounted P/E, discounted back to 2027E. The target multiple is derived from the correlation between peer P/E and the sum of net-income year-on-year growth and operating margin. The report identifies supply-chain risks, weaker semiconductor-client demand, and weaker-than-expected product expansion as the key downside risks.

Analysis framework

The report combines management discussion from SEMICON Taiwan with an assessment of customer demand, product breadth, product-mix upgrades, and customer diversification. For valuation, Goldman Sachs applies a discounted forward P/E framework and calibrates the target multiple against peer relationships between valuation, earnings growth, and operating margin.

Methodology notes

• Valuation methodsP/E and PEG Valuation

  Discounted forward P/E valuation calibrated to peer P/E, net-income growth and operating margin.

  Goldman Sachs sets its Rmb509 target using 46x 2030E P/E discounted back to 2027E, with the multiple informed by how peer valuations correlate with growth and operating profitability.

Asset mapping & comparison

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

• Anji Micro (688019.SH)

  Primary covered company expected to benefit from AI-driven advanced-logic and memory demand and a higher-end product mix.

  Strengths

  Broad CMP slurry and wet-chemical product coverage, more than 10 years of overseas customer service, and qualified materials for global-tier clients.

  Comparison

  Management noted suppliers differentiate through product features and comparable or better performance.

  Risks

  Supply-chain risks, weaker semiconductor-client demand, and weaker-than-expected product expansion.

Key data

• 12-month target priceRmb509Based on 46x 2030E discounted P/E, discounted back to 2027E.
• Closing priceRmb212.50Price as of the September 4, 2026 close.
• Implied upside139.5%Upside to the Rmb509 target price.
• Mainland China revenue shareOver 96%Share of total revenue in 2025.
• RevenueRmb2,504.2mn in 2025; Rmb3,519.3mn in 2026E; Rmb4,692.3mn in 2027E; Rmb5,804.3mn in 2028EGoldman Sachs forecasts.
• EBITDARmb933.7mn in 2025; Rmb1,399.6mn in 2026E; Rmb2,093.5mn in 2027E; Rmb2,675.3mn in 2028EGoldman Sachs forecasts.

Impact & implications

Goldman Sachs believes Anji Micro is positioned to benefit from rising investment in advanced logic and memory, particularly as customers require higher-end materials. Broad CMP slurry and wet-chemical coverage, new-material expansion, and relationships with both China and global-tier customers underpin the maintained Buy view.

Risks

• Supply-chain disruption could adversely affect the company.
• Semiconductor-client demand could be weaker than expected.
• Expansion into new products and applications could be weaker than expected.