Zhi Tong Cai Jing·2025-08-11 07:05Core Viewpoint - Goldman Sachs has downgraded its earnings per share forecast for SMIC from 2023 to 2027 by 1%, reflecting adjustments in gross margin and operating profit margin assumptions due to increased depreciation and amortization from capacity expansion [1] Financial Performance - The second quarter revenue growth slowdown for SMIC is considered temporary, with the company guiding for a quarter-on-quarter revenue increase of 5% to 7% for the current quarter [1] - The gross margin guidance for the current quarter is set at 18% to 20%, which is below Goldman Sachs' and market expectations of 20.6% and 21.1% respectively, attributed to increased depreciation and amortization [1] Positive Factors - Positive indicators include stable capacity utilization, strong customer orders, and ongoing capacity expansion that supports the company in capturing demand and providing more complete products [1] - Management anticipates stable orders in the coming quarters, driving delivery growth, with average selling prices on an upward trend due to reduced discounts on 12-inch wafers and higher contributions from 12-inch wafer sales compared to 8-inch wafers [1] Market Outlook - Despite low visibility on end-demand for the fourth quarter, management expects capacity utilization to remain stable, supported by strong customer demand [1]