Group 1 - The core viewpoint of the article indicates that both SMIC and Hua Hong Semiconductor have reported their Q2 2025 earnings, exceeding market expectations due to high capacity utilization driven by domestic demand [1] - Both companies forecast a sequential revenue growth of 6% and 11% for Q3 2025, respectively, suggesting a gradual recovery in semiconductor demand, although margin recovery may still be distant [1] - Citi's report highlights that the demand for foundry services in the backend process remains robust, but further growth will depend on significant margin improvements [1] Group 2 - Citi raised the target price for Hua Hong from HKD 39 to HKD 45, while maintaining the target price for SMIC at HKD 53, with a "neutral" rating for both companies [1]