SMIC(688981) 新浪财经·2025-05-14 00:30Core Viewpoint - Company reported Q1 2025 revenue of $2.25 billion, a 1.8% increase quarter-over-quarter, but below the previous guidance of 6%-8% [1] Group 1: Financial Performance - Q1 2025 showed an increase in wafer shipments by 15% quarter-over-quarter, with capacity utilization rising by 4.1 percentage points to 89.6%, but average selling price (ASP) decreased by 9% [1] - Gross margin remained stable at 22.5% [1] - Company guidance for Q2 2025 indicates a revenue decline of 4%-6% and a gross margin forecast of 18%-20%, both lower than Bloomberg consensus estimates [1][2] Group 2: Market Demand and Production Capacity - Strong domestic demand is expected to benefit the company, particularly in the simulation and other sectors [1][2] - The main 8-inch and 12-inch factories are operating near full capacity, with stable shipment expectations for Q2 [2] - The company anticipates that the ASP decline is due to a one-time issue related to joint venture factory operations and equipment validation, which is expected to be resolved gradually in the second half of the year [1][2] Group 3: Industry Impact and Valuation - The impact of tariffs on overall industrial revenue is considered minimal, at less than 1% [3] - Demand visibility extends to the end of Q3, with expectations for continued full capacity, while Q4 demand remains uncertain [3] - The company maintains target prices of HKD 63 for Hong Kong shares and RMB 119 for A-shares, reflecting a premium of 103% for A/H shares [3]