Ge Long Hui·2025-07-26 18:35Group 1: Industry Overview - The domestic wafer foundry's overall capacity utilization rate has improved, benefiting from increased demand in home appliances, automotive, and industrial sectors, which is better than previously expected [1] - The semiconductor manufacturing industry is seen as a cornerstone of the digital economy, with continued improvement in supply and demand expected in the second half of 2025 [1][2] Group 2: Company Performance - In Q1 2025, the company achieved revenue of $2.25 billion, a year-on-year increase of 28% and a quarter-on-quarter increase of 1.8%, with a gross margin of 22.5%, up 8.9 percentage points year-on-year and 2 percentage points quarter-on-quarter [2] - The net profit for Q1 2025 was $190 million, representing a year-on-year increase of 162% and a quarter-on-quarter increase of 75% [2] - The increase in net profit despite only a slight revenue growth is attributed to an 8.8 percentage point year-on-year and 4.1 percentage point quarter-on-quarter increase in capacity utilization, reaching 89.6%, and a reduction in R&D expenses [2] Group 3: Profit Forecast - The company has raised its full-year profit forecast by 7%, expecting net profits of $740 million, $1.01 billion, and $1.28 billion for 2025-2027, representing year-on-year growth of 50%, 37%, and 26% respectively [2] - The earnings per share (EPS) are projected to be $0.09, $0.13, and $0.16 for 2025-2027, with current H-share prices corresponding to price-to-earnings (PE) ratios of 50x, 37x, and 26x respectively [2]