Zheng Quan Zhi Xing·2025-05-09 12:03Core Viewpoint - The report highlights that despite short-term fluctuations, the growth trend of SMIC remains intact, driven by capacity release and revenue increase [1][2]. Financial Performance - In Q1 2025, SMIC achieved revenue of 16.301 billion yuan, a year-on-year increase of 29.44% [2]. - The net profit attributable to shareholders was 1.356 billion yuan, up 166.50% year-on-year [2]. - The gross margin was 23.10%, an increase of 8.91 percentage points year-on-year, while the net profit margin was 14.24%, up 10.67 percentage points year-on-year [2]. Capacity and Production - The company’s monthly capacity for 8-inch wafers reached 973,300 pieces, a year-on-year increase of 19.47% [2]. - The total wafer shipments amounted to 2.2921 million pieces, a significant year-on-year growth of 27.70% [2]. - Capital expenditure for Q1 2025 was 10.157 billion yuan, indicating continued strong investment [2]. Market Segmentation - The consumer electronics sector accounted for 40.6% of revenue, up 9.7 percentage points year-on-year, driven by government subsidies [3]. - The automotive sector's revenue share increased to 9.6%, up 2.4 percentage points year-on-year, as it entered a replenishment cycle [3]. - The share of 12-inch products rose to 78.1%, reflecting a shift towards mid-to-high-end products [3]. Geographical Revenue Distribution - Revenue from the Chinese market increased to 84.3%, up 2.7 percentage points year-on-year, benefiting from local supply chain trends [3]. - Revenue shares from the U.S. and Eurasia decreased to 12.6% and 3.1%, down 2.3 and 0.4 percentage points year-on-year, respectively [3]. Advanced Process and Future Outlook - The profit from minority shareholders improved significantly, with Q1 2025 losses at 135 million USD, a notable recovery from the previous year [4]. - The demand for advanced processes is expected to increase in Q2 2025, driven by geopolitical factors promoting self-sufficiency in computing power [4]. Investment Recommendations - The company’s Q1 2025 performance was slightly below guidance, leading to a downward revision of net profit forecasts for 2025, 2026, and 2027 to 66.407 billion, 75.903 billion, and 86.226 billion yuan, respectively [4]. - Despite short-term price fluctuations, the long-term growth logic remains clear, maintaining a "buy" rating [4].