Ge Long Hui·2025-08-10 18:50Core Viewpoint - The company is expected to see continued revenue growth in Q4 2025, benefiting from AI-driven domestic substitution, with a "Buy" rating maintained [1]. Group 1: Revenue and Profit Forecast - Revenue for Q4 2025 is projected to grow 15% year-on-year, driven by sufficient orders, resolution of production issues, and advancements in technology [1]. - The company's Q2 2025 revenue was $2.21 billion, a slight decline of 1.7% quarter-on-quarter, exceeding previous guidance [1][2]. - The net profit forecast for 2025-2026 has been revised down to $560 million and $920 million, respectively, due to increased depreciation from new capacity [1]. Group 2: Production and Margin Analysis - The company reported a Q2 2025 gross margin of 20.4%, slightly above the guidance range of 18%-20% [2]. - The ASP (Average Selling Price) decreased by 6% quarter-on-quarter due to production volatility and product mix adjustments [2]. - The Q3 2025 revenue guidance is expected to grow by 5%-7%, slightly below previous expectations due to ongoing production issues [2]. Group 3: Market Position and Competitive Advantage - The company is benefiting from a diversified technology platform and an enhanced competitive position within the domestic supply chain [1]. - The company indicated that October orders remain in high demand, suggesting that capacity utilization will not significantly decline in Q4 2025 [2].