Ge Long Hui·2025-08-11 02:53Core Viewpoint - The report from Credit Lyonnais indicates that SMIC's Q2 revenue declined by 1.7% quarter-on-quarter, which is above guidance but below investor expectations. The guidance for Q3 revenue and gross margin is also lower than market expectations [1] Group 1: Financial Performance - SMIC's Q2 revenue decline of 1.7% is noted, which is higher than the company's guidance but lower than what investors anticipated [1] - The company believes that initial concerns regarding demand have not materialized and expects to benefit from an increase in customer market share [1] - The impact of previous production fluctuations is diminishing, which is expected to lead to an increase in average selling prices in Q3 [1] Group 2: Forecast Adjustments - Credit Lyonnais has lowered its profit forecasts for SMIC for the years 2025 to 2027 [1] - The target price for SMIC's H-shares has been adjusted from HKD 59.2 to HKD 58.8, while the target price for A-shares has been reduced from CNY 119.8 to CNY 107.3 [1] - Despite the adjustments, Credit Lyonnais maintains a "Outperform" rating for SMIC [1]