Nomura: Anji Microelectronics Technology (688019) Upgraded to Buy on Advanced-Node Development
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Nomura has upgraded Anji Microelectronics Technology (688019 CH) from Neutral to Buy, sharply raising its target price from RMB 175 to RMB 320. This revised target is based on 50 times the firm's 2026 forecast price-to-earnings multiple, a significant expansion from the previous 27 times.
The upgrade primarily reflects Anji's leadership position in sub-10nm advanced processing nodes and its comprehensive, full-category product platform advantages. Nomura anticipates that the Chinese CMP slurry market will expand to RMB 10.5 billion by 2028, driven largely by demand from sub-10nm logic, CoWoS advanced packaging, and high-layer 3D NAND and HBM manufacturing. Anji's copper and copper barrier layer slurries have successfully transitioned from qualification to mass production at key customers. Furthermore, its 7nm cobalt interconnect slurry is advancing through subsequent station qualifications at leading foundries, establishing a completely new category without direct Cabot or DuPont benchmarks.
Operational capabilities are scaling accordingly. Planned capacity expansions to 60,000 tons annually are expected to support a robust 21% revenue compound annual growth rate between 2025 and 2028. Consequently, Nomura increased its 2026 and 2027 net profit forecasts to RMB 1.072 billion and RMB 1.303 billion, respectively. The firm projects Anji's global market share to climb from approximately 10% in 2024 to 15% by 2026, with a realistic trajectory toward 25–30% within five years. Key risks include reliance on Fuso for ultra-high purity silica sol and intensifying competition.