Core Viewpoint - SMIC reported strong Q3 earnings with record revenue and significant profit growth, indicating robust operational performance in the semiconductor industry [1] Financial Performance - In Q3, SMIC achieved revenue of 17.162 billion yuan, a quarter-on-quarter increase of 6.9%, marking a new high for single-quarter revenue [1] - The net profit attributable to shareholders was 1.517 billion yuan, representing a year-on-year growth of 43.1% [1] - The gross margin was 25.5%, up 4.8 percentage points from the previous quarter [1] Production Capacity - SMIC's monthly production capacity has surpassed 1 million wafers for the first time, which is more than double that of its domestic competitor, Hua Hong Semiconductor, whose latest monthly capacity is 468,000 wafers [1] - If the production continues to grow at a rate of 2% quarter-on-quarter, SMIC's revenue for Q4 is projected to be around 17.5 billion yuan [1] Market Valuation - The valuation of the A-share semiconductor index has reached historical highs, with the latest P/E ratio for the Sci-Tech Innovation Board at 184 times, placing it in the 91st percentile over the past three years [1][2] - The semiconductor industry’s latest P/E ratio stands at 128 times, also in the 91st percentile, while the Hong Kong stock market's semiconductor index has a P/E ratio of only 40 times, in the 46th percentile, indicating a significant valuation premium for A-shares [1][2] Investment Trends - The Hong Kong market is expected to experience a "slow bull market" due to international capital inflow during the interest rate cut cycle, with new economy sectors like AI technology anticipated to be key investment themes [3] - Southbound capital is primarily from long-term institutional investors focusing on the quality and sustainability of profit growth, with a potential allocation increase of 11 trillion HKD over the next five years [3] ETF Launch - The first ETF focusing on the Hong Kong semiconductor industry has been launched, comprising 70% hardware and 30% software, with SMIC holding a weight of 20.27% in the index [4] - This ETF aims to capture the AI hard technology market trends without including major internet companies like Alibaba and Tencent, enhancing its focus on high-tech sectors [4]

Group 1 - Semiconductor leader SMIC reported strong Q3 performance with total revenue of 17.162 billion yuan, a quarter-on-quarter increase of 6.9% and a year-on-year increase of 9.9%, marking a record high for quarterly revenue [1] - The net profit attributable to shareholders for Q3 reached 1.517 billion yuan, representing a year-on-year growth of 43.1% and a quarter-on-quarter increase of 60.64% [1] - The "14th Five-Year Plan" is expected to significantly boost the growth potential of China's chip industry to a "decisive breakthrough" level [1] Group 2 - The newly launched Hong Kong ETF (159131) focuses on the semiconductor industry chain and tracks the CSI Hong Kong Stock Connect Information Technology Composite Index, which excludes large-cap internet companies and emphasizes the Hong Kong semiconductor sector [1] - The index consists of 70% hardware and 30% software, heavily weighted towards semiconductor, electronics, and computer software sectors [2] - As of October 31, 2025, the index includes 42 Hong Kong hard tech companies, with SMIC holding a weight of 20.27%, Xiaomi at 9.11%, and Hua Hong Semiconductor at 5.64% [2] Group 3 - The CSI Hong Kong Stock Connect Information Technology Composite Index has achieved a cumulative increase of 89.60% from December 30, 2022, to October 31, 2025, outperforming other Hong Kong tech indices [2] - The index's maximum drawdown during the same period was -36.31%, which is better than the maximum drawdowns of other Hong Kong tech indices [2] - As of November 10, 2025, the index's price-to-earnings ratio stands at 39.85, significantly lower than major global tech indices, indicating potential growth opportunities for investors [3]

Core Insights - SMIC's co-CEO Zhao Haijun expects the company's annual sales revenue to exceed $9 billion, marking a new milestone for revenue scale [2] - The company reported a 9.9% year-on-year increase in revenue for Q3 2025, with a net profit growth of 43.1% [5] - Despite a seasonal slowdown in Q4, the company maintains a supply-demand imbalance, indicating continued strong performance [2] Financial Performance - In Q3 2025, SMIC's revenue reached 171.62 billion RMB, with a year-on-year growth of 9.9% and a net profit of 15.17 billion RMB, up 43.1% [5] - For the first three quarters of 2025, total revenue was 495.10 billion RMB, reflecting an 18.2% increase year-on-year, while net profit grew by 41.1% to 38.18 billion RMB [5] - The gross margin for Q3 2025 was 25.5%, up 4 percentage points year-on-year, and the gross margin for the first three quarters was 23.2%, an increase of 5.6 percentage points [5] Market Performance - As of November 14, SMIC's A-share price slightly declined by 0.89%, with a market capitalization of 649.5 billion RMB [5][6] - The stock's performance reflects a broader market sentiment, with a notable premium of -44.65% in the Hong Kong market compared to A-shares [6]

Group 1 - The China Securities Digital Economy Theme Index (931582) decreased by 1.63% as of November 14, 2025, with mixed performance among constituent stocks [1] - Among the top-performing stocks, SMIC (688981) led the gains, while GigaDevice (603986) experienced the largest decline [1] - The Digital Economy ETF (560800) saw a turnover of 0.66% and a transaction volume of 4.385 million yuan, with a weekly scale increase of 7.1594 million yuan and a share increase of 18 million [1] Group 2 - At the Baidu World Conference on November 13, 2025, Baidu showcased several AI achievements, including the release of the Wenxin large model 5.0 and the new generation Kunlun chips [2] - The new Kunlun chip products and the Tianchi supernodes are expected to enhance domestic computing power and AI applications, with a focus on advanced manufacturing processes and chip architecture upgrades [2] - The Digital Economy ETF closely tracks the China Securities Digital Economy Theme Index, which reflects the overall performance of listed companies in high digitalization sectors [2] Group 3 - As of October 31, 2025, the top ten weighted stocks in the China Securities Digital Economy Theme Index accounted for 53.93% of the index [3] - The top ten stocks include Dongfang Caifu (300059), Cambricon (688256), and SMIC (688981), with varying performance metrics [5]

【导读】中芯国际联合CEO赵海军预计，公司全年销售收入将超过90亿美元 中国基金报记者 卢鸰 11月14日早间，中芯国际联合CEO赵海军在业绩交流会上表示，当前产业链切换加速进行， 渠道备货补库存持续，公司积极配合客户保证出货，第三季度公司产能及出货量持续提升； 同时，由于制程更加复杂的产品出货增加，第三季度平均销售单价环比增长3.8%。 赵海军称，作为行业淡季，第四季度客户备货有所放缓，但产业链迭代效应持续，淡季不 淡，公司产线仍处于供不应求状态。据测算，公司全年销售收入预计超过90亿美元，收入规 模将踏上新台阶。 2025年第三季度，中芯国际的毛利率达25.5%，同比提升4个百分点，环比提升4.8个百分 点；2025年前三季度，中芯国际的毛利率达23.2%，同比提升5.6个百分点。 11月14日早盘，中芯国际A股股价微跌，截至记者发稿，下跌0.89%，最新市值为6495亿 元。 | < ロ | 中心国际(688981) | | | | | --- | --- | --- | --- | --- | | 交易中 11-14 09:30:11 科 通 融 | | | | | | 122.01 额 1.95亿 ...

Core Viewpoint - SMIC's fourth-quarter performance guidance has declined due to the traditional off-season and fluctuations in the mobile market, leading to cautious procurement in industries such as mobile phones and network communication equipment [1] Group 1 - SMIC's joint CEO Zhao Haijun indicated that the company has adopted a conservative outlook for shipment forecasts in the next two quarters [1] - The decline in performance guidance is attributed to a shortage of storage supply and rising prices, impacting the procurement behavior of various industries [1] - To meet urgent orders related to storage and analog products, the company postponed the shipment of some mobile products in the third quarter [1]

Core Viewpoint - The semiconductor ETF from Southern (159325) opened with a decline of 1.62%, indicating a bearish trend in the semiconductor sector [1] Group 1: ETF Performance - The Southern Semiconductor ETF (159325) opened at 1.456 yuan, reflecting a decrease of 1.62% [1] - Since its establishment on October 31, 2024, the fund has achieved a return of 47.93%, while its return over the past month has been -6.60% [1] Group 2: Major Holdings Performance - Key holdings in the ETF include: - SMIC: down 0.08% - Cambricon: down 2.52% - Haiguang Information: down 2.13% - Northern Huachuang: down 1.13% - Lanke Technology: down 2.97% - Zhaoyi Innovation: down 5.05% - Zhongwei Company: down 2.48% - OmniVision: down 1.18% - Changdian Technology: down 1.15% - Unisoc: down 1.81% [1]

Core Viewpoint - Semiconductor manufacturers, including SMIC, indicate that original equipment manufacturers (OEMs) in various sectors such as automotive and smartphones will face pricing pressure due to market dynamics [1] Group 1 - The joint CEO of SMIC highlights that OEMs across different industries will experience pricing challenges [1]

Group 1 - The core viewpoint of the articles highlights the growth of the consumer-grade AR/VR glasses market in China, with significant sales increases driven by new product launches and technological advancements [1][2] - CINNO Research reported that in Q3 2025, the sales volume of consumer-grade AR/VR glasses reached 169,000 units, representing a 17% quarter-over-quarter growth and a 57% year-over-year growth [1] - Consumer-grade AR devices were identified as the main growth driver, with sales reaching 130,000 units, marking a 109% year-over-year increase [1] Group 2 - The CSI Consumer Electronics Theme Index (931494) includes 50 listed companies involved in component production and consumer electronics brand design, reflecting the overall performance of the sector [2] - As of October 31, 2025, the top ten weighted stocks in the CSI Consumer Electronics Theme Index accounted for 56.3% of the index, with notable companies including Luxshare Precision, Cambricon, and Industrial Fulian [2] - The Consumer Electronics ETF (561600) closely tracks the CSI Consumer Electronics Theme Index, providing investors with exposure to the performance of the sector [2]

Core Viewpoint - The company anticipates stable to slight revenue growth in Q4 despite it being a traditional off-season, with a revenue guidance of flat to 2% growth quarter-over-quarter [1] Group 1: Revenue Guidance - The company projects Q4 revenue to be flat to a 2% increase compared to the previous quarter [1] - Full-year sales revenue is expected to exceed $9 billion, marking a new milestone for the company's revenue scale [1] Group 2: Operational Performance - The production lines are expected to remain fully loaded, indicating strong operational efficiency [1] - The gross margin guidance for Q4 is set at 18% to 20%, consistent with the guidance provided for Q3 [1] Group 3: Market Conditions - Although customer inventory replenishment has slowed, the ongoing industry chain switching and iteration effects are expected to mitigate the typical seasonal downturn [1]