Core Viewpoint - The rumors regarding price cuts by SMIC to gain market share have been debunked, as the company has maintained stable pricing while increasing production capacity and meeting market demand [1][5]. Financial Performance - In Q4 2024, SMIC achieved sales revenue of over $2.2 billion, marking a 1.7% quarter-on-quarter increase, with a gross margin of 22.6%, up 2.1 percentage points [1]. - For the entire year of 2024, SMIC's sales revenue reached $8.03 billion, a 27% year-on-year increase, setting a historical record, while the gross margin was 18.0%, down 1.3 percentage points due to rising depreciation [2]. - The average selling price in Q4 increased by 6% quarter-on-quarter, counteracting the impact of decreased shipments and rising depreciation on revenue and gross margin [1][2]. Production and Capacity - SMIC's production capacity utilization rate remained at 85.5% in Q4, with a total of 1.991761 million 8-inch wafers sold [1]. - The company added 28,000 pieces of 12-inch capacity in Q4, optimizing its product mix [1]. - By the end of 2024, SMIC's 8-inch standard logic monthly production capacity was 948,000 pieces, with total shipments exceeding 8 million pieces [2]. Market Demand and Trends - The demand for 28nm and 40nm nodes remains strong, particularly in automotive electronics, IoT, and smart hardware sectors, indicating a supply-demand imbalance rather than oversupply [3]. - The company anticipates a positive outlook for Q1 2025, with expected sales revenue growth of 6%-8% and a gross margin between 19%-21% [3]. - There is a notable trend of industries transitioning to domestic supply chains, with some products entering mass production [3]. Strategic Insights - SMIC aims to enhance its core competitiveness through leading technology and strategic pricing, avoiding proactive price cuts while being prepared to face price competition with strategic customers when necessary [5]. - The company emphasizes that technological innovation and capacity optimization are key to sustainable development in the wafer foundry industry, moving away from price-cutting as a competitive strategy [5].

FF305 翌日披露報表 (股份發行人 ── 已發行股份或庫存股份變動、股份購回及/或在場内出售庫存股份) 表格類別： 股票 狀態： 新提交 公司名稱： 中芯國際集成電路製造有限公司 呈交日期： 2025年2月17日 如上市發行人的已發行股份或庫存股份出現變動而須根據《香港聯合交易所有限公司（「香港聯交所」）證券上市規則》(「《主板上市規則》」)第13.25A條 / 《香港聯合交易所有限公司GEM證券 上市規則》(「《GEM上市規則》」)第17.27A條作出披露，必須填妥第一章節 。 FF305 | 8). | 就根據股份計劃授予參與人（發行人的董事除外）的股份獎勵或期權 | 1,000 | 0.00001 % | HKD | 10.512 | | --- | --- | --- | --- | --- | --- | | | 而發行新股或轉讓庫存股份 - 涉及新股 | | | | | | | 2014以認股權計劃(於2013年6月13日獲採納) | | | | | | 變動日期 | 2025年2月5日 | | | | | | 9). | 就根據股份計劃授予參與人（發行人的董事除外）的股份獎勵或期權 | 6, ...

Investment Rating - The report maintains a "Buy" rating for the company [1] Core Insights - The company reported a record high revenue of $2.207 billion in Q4 2024, with a quarter-over-quarter growth of 1.7%, while the net profit attributable to shareholders was $493 million, a year-over-year decrease of 45.4% due to declines in investment and financial income [4] - The company’s A-share forecast for 2024 indicates a revenue of 15.917 billion yuan, a year-over-year increase of 31%, with a gross margin of 21.1% [5] - The company’s overall capacity utilization rate for Q4 2024 was 85.5%, with an average selling price (ASP) of $1,108 per wafer, reflecting an 8.3% increase due to product mix changes [7] - The company expects Q1 2025 sales revenue to be between $2.34 billion and $2.38 billion, representing a quarter-over-quarter increase of 6% to 8% [7] - The report adjusts the profit forecast for 2024-2026, projecting net profits of 3.699 billion yuan, 6.055 billion yuan, and 7.544 billion yuan respectively, with corresponding price-to-earnings ratios of 214, 131, and 105 [7] Financial Data Summary - The company’s total revenue for 2024 is projected at 57.796 billion yuan, with a year-over-year growth rate of 27.7% [6] - The gross margin for 2024 is expected to be 19.3%, with a return on equity (ROE) of 2.5% [6] - The company’s net profit for 2024 is forecasted to be 3.699 billion yuan, a decline of 23.3% year-over-year [6]

Investment Rating - The report maintains a "Buy" rating for the company with a target price of 114.63 CNY [2][5][9] Core Insights - The company is expected to see a recovery in downstream demand, leading to continuous capacity expansion, with the first quarter of 2025 not being a traditional off-season [1][8] - The forecasted net profit attributable to the parent company for 2024-2026 is 37.0 billion, 56.1 billion, and 71.0 billion CNY respectively, reflecting adjustments in tax rates and minority interests [2][9] Financial Performance Summary - **Revenue**: The company reported revenues of 49,516 million CNY in 2022, with a projected increase to 57,796 million CNY in 2024, representing a growth of 28% [4][15] - **Net Profit**: The net profit attributable to the parent company is expected to decline from 12,133 million CNY in 2022 to 3,699 million CNY in 2024, before recovering to 5,614 million CNY in 2025 [4][15] - **Earnings Per Share (EPS)**: EPS is projected to decrease from 1.52 CNY in 2022 to 0.46 CNY in 2024, with a recovery to 0.70 CNY in 2025 [4][15] - **Gross Margin**: The gross margin is expected to decline from 38.3% in 2022 to 18.6% in 2024, before improving to 20.7% in 2025 [4][15] - **Net Margin**: The net margin is projected to decrease from 24.5% in 2022 to 6.4% in 2024, with a slight recovery to 7.9% in 2025 [4][15] Capacity and Market Outlook - The company plans to accelerate capacity expansion, with a projected capital expenditure of 73.3 billion USD in 2024, aiming for a monthly capacity of 948,000 8-inch wafers by the end of the year, an 18% increase from 2023 [8][9] - The average capacity utilization rate is expected to improve to 85.6% in 2024, up by approximately 11 percentage points from the previous year [8][9] - Downstream demand is anticipated to improve due to national consumption stimulus policies, leading to increased inventory replenishment by customers [8][9]

Investment Rating - The report maintains a "Buy" rating for the company, with an upgraded target price of HKD 55.6 for the Hong Kong stock and RMB 120.1 for the A-share, indicating potential upside of 15.8% and 15.2% respectively [2][4]. Core Insights - The company is experiencing a continuous improvement in gross margin, with Q4 2024 revenue reaching USD 2.207 billion, a 32% year-on-year increase, and a gross margin of 22.6%, exceeding market expectations [3][11]. - The company anticipates a strong order demand for the first half of 2025, driven by domestic subsidies for consumer electronics and geopolitical factors leading to preemptive orders [2][3]. - The long-term outlook remains optimistic due to domestic demand for localization and the company's competitive advantages in the semiconductor industry [2][4]. Financial Performance Summary - Q4 2024 revenue was USD 2.207 billion, with a gross profit of USD 499 million, resulting in a gross margin of 22.6%, which is a 6.2 percentage point increase year-on-year [11]. - The company expects Q1 2025 revenue to be around USD 2.362 billion, reflecting a 35% year-on-year growth [12]. - The projected revenue for 2025 is USD 9.764 billion, with a gross margin forecasted to improve to 19.7% [5][13]. Earnings Forecast Summary - The company’s net profit for 2024 is projected to be USD 493 million, with a significant increase to USD 829 million in 2025, representing a 68% growth [5][13]. - Basic earnings per share are expected to rise from USD 0.06 in 2024 to USD 0.10 in 2025 [5][13]. - The EBITDA for 2025 is forecasted at USD 5.246 billion, with an EV/EBITDA multiple of 15.9x [4][14]. Market Position and Valuation - The company is positioned favorably within the semiconductor industry, with a projected EV/EBITDA of 15.9x for 2025, indicating potential for valuation upside [4][14]. - The report highlights the competitive landscape, noting that while there is pressure from new capacity in the semiconductor foundry sector, the company maintains a strong market position [2][4].

Group 1 - Alibaba's stock surged in Hong Kong, reaching a peak increase of 9.1%, the highest since January 2022, with a year-to-date increase of 41.63% and a trading volume of 400.6 billion HKD on February 13 [1][2] - The collaboration between Alibaba and Apple to advance AI large model technology has been confirmed, enhancing market confidence in Alibaba's innovative capabilities [2][5] - The overall performance of Chinese tech stocks, including Alibaba, has been buoyed by a recovery in the Chinese economy and advancements in AI technology, leading to a significant rise in the Nasdaq Golden Dragon Index [7][8] Group 2 - Alibaba's innovative business developments, such as the commercialization of Xianyu and integration of AI technologies, are crucial for capturing the AI wave and attracting younger consumers [4][3] - The company has repurchased shares worth 1.3 billion USD in Q4 2024, totaling 16 billion USD for the entire year, reflecting strong confidence in the current market environment [4] - Analysts maintain a strong recommendation for Alibaba, citing its competitive edge in AI and potential for growth in the cloud services sector [5][6]

Investment Rating - The report maintains a "Buy" rating for both the A-shares and H-shares of the company [7]. Core Views - The company is expected to benefit from strong revenue guidance for Q1 2025, driven by supply chain security considerations and national consumption stimulus policies, leading to increased customer orders [1][3]. - The company anticipates a robust performance in H1 2025, supported by national consumption stimulus policies and the return of the industry chain, particularly in the automotive and AI sectors [3]. - The report highlights the strong growth in the Chinese market, with local manufacturing driving significant revenue increases [2]. Revenue and Profitability - In Q4 2024, the company reported revenue of $2.207 billion, a year-on-year increase of 32% and a quarter-on-quarter increase of 1.7% [1]. - The gross margin for Q4 2024 was 22.6%, exceeding previous guidance and market expectations [1]. - The company expects Q1 2025 revenue to grow by 6% to 8% quarter-on-quarter, translating to $2.334 to $2.378 billion, which is a year-on-year increase of 34% to 36% [1]. Market Segmentation - In Q4 2024, the revenue breakdown by application showed that smartphones, computers and tablets, consumer electronics, and industrial and automotive sectors contributed 24.2%, 19.1%, 40.2%, 8.3%, and 8.2% respectively to wafer revenue [2]. - The 12-inch wafer revenue accounted for 80.6% of total wafer revenue in Q4 2024, reflecting a year-on-year increase of 6.4 percentage points [2]. Capacity and Capital Expenditure - The company plans to maintain its capital expenditure at $7.33 billion in 2024, with a similar forecast for 2025, which is expected to support key capacity construction [4]. - The utilization rate for Q4 2024 was 85.5%, showing a year-on-year increase of 8.7 percentage points [4]. Profit Forecast and Valuation - The report raises the profit forecast for the company, projecting a net profit of $795 million for 2025, representing a year-on-year growth of 61% [5]. - The price-to-book ratio for the company's H-shares is projected at 2.2x for 2025 and 2.1x for 2026 [5].

Investment Rating - The report maintains a "Strong Buy" rating for the company, with a target price of 123.7 CNY or 53.5 HKD [2][7]. Core Insights - The company reported a sales revenue of 15.917 billion CNY in Q4 2024, showing a year-on-year increase of 31.0% and a quarter-on-quarter increase of 2.0%, exceeding previous guidance [7]. - The gross margin for Q4 2024 was 21.1%, higher than the prior guidance of 18-20% [7]. - For Q1 2025, the company expects a sales revenue growth of 6-8% and a gross margin between 19-21% [7]. - The automotive industry is experiencing accelerated domestic production, and consumer demand is becoming clearer, with significant contributions from various sectors [7]. - The company is positioned to benefit from the increasing demand for advanced process manufacturing capabilities, particularly in the AI era [7]. Financial Summary - Total revenue is projected to grow from 45.25 billion CNY in 2023 to 57.80 billion CNY in 2024, representing a year-on-year growth rate of 27.7% [3][8]. - The net profit attributable to the parent company is expected to decline from 4.82 billion CNY in 2023 to 3.70 billion CNY in 2024, with a significant recovery anticipated in 2025 [3][8]. - Earnings per share (EPS) is forecasted to be 0.46 CNY in 2024, increasing to 0.74 CNY in 2025 and 0.91 CNY in 2026 [3][8]. - The price-to-earnings (P/E) ratio is projected to decrease from 173 in 2023 to 141 in 2025, indicating an improvement in valuation [3][8]. Market Position and Strategy - The company is recognized as a leading domestic foundry, benefiting from the strategic importance of wafer fabrication in the current market environment [7]. - The report highlights the company's ability to adapt to changing market demands and its focus on enhancing product mix to improve average selling prices (ASP) [7]. - The anticipated capital expenditures for 2025 are expected to remain stable compared to 2024, indicating a cautious yet optimistic growth strategy [7].

Investment Rating - The investment rating for the company is "Strong Buy," indicating an expected stock price increase of over 20% within the next six months compared to the market benchmark index [22]. Core Insights - The report highlights that the demand for domestic chips is expected to accelerate, with growth potential in both mature and advanced process chips in China, leading to an optimistic long-term outlook for the domestic chip and overall electronics industry [3]. - The company announced a sales revenue forecast of $2,207.3 million for Q4 2024, representing a 31% year-on-year increase, and expects a sequential revenue growth of 6% to 8% for Q1 2025, outperforming seasonal trends and market expectations [5][6]. - The gross margin for Q4 2024 is reported at 22.6%, with a 2.1 percentage point increase from Q3 and a 6.2 percentage point increase year-on-year. The company anticipates a gross margin range of 19% to 21% for Q1 2025, also exceeding market expectations [9][5]. - The net profit from non-controlling interests reached $163 million in Q4 2024, a 160% year-on-year increase, indicating significant improvements in advanced process revenue and profitability [17][5]. - The company shipped over 8 million 8-inch equivalent wafers in 2024, with Q4 shipments of 1.992 million wafers, reflecting an 18.9% year-on-year growth, although the growth rate is lower than revenue growth, suggesting that revenue increases are primarily driven by higher average product prices [5]. - Capital expenditures for Q4 2024 were $1.66 billion, with an annual total of approximately $7.33 billion. The company expects capital expenditures in 2025 to remain roughly the same as in 2024, focusing on advanced process expansion [5]. - The report notes that domestic AI models, such as Deepseek, are being adopted by nearly all computing chip companies in China, indicating a strong growth trajectory for domestic chip applications [5].

Investment Rating - The investment rating for the company is "Buy" (maintained) [5] Core Views - The company achieved a record revenue of $8.03 billion in 2024, a year-on-year increase of 27%, exceeding initial guidance of single-digit growth [1] - Revenue from Chinese customers grew by 34% year-on-year, driven by local manufacturing demand and government consumption stimulus policies [2] - The company expects Q1 2025 sales revenue to increase by 6-8% quarter-on-quarter, with a projected gross margin of 19%-21%, reflecting a year-on-year increase of 5.3-7.3 percentage points [3] Summary by Sections Financial Performance - In Q4 2024, the company reported revenue of $2.207 billion, a year-on-year increase of 31.5% and a quarter-on-quarter increase of 1.7%, marking seven consecutive quarters of growth [4] - The gross margin for Q4 2024 was 22.6%, up 6.2 percentage points year-on-year and 2.1 percentage points quarter-on-quarter [4] - The average capacity utilization rate for the year was 85.6%, an increase of 10.6 percentage points year-on-year [1] Market Outlook - The semiconductor market is expected to recover in 2024, with inventory levels among chip design companies returning to healthy levels [2] - The company anticipates that the sales growth in 2025 will exceed the average growth of comparable peers, with capital expenditures remaining stable year-on-year [3] Revenue Projections - Revenue projections for 2024 to 2026 are $57.796 billion, $67.043 billion, and $75.088 billion, with growth rates of 27.7%, 16.0%, and 12.0% respectively [10] - The net profit attributable to the parent company is projected to be $3.699 billion, $5.358 billion, and $6.989 billion for the same years, with growth rates of -23.3%, 44.8%, and 30.4% respectively [10]