Core Viewpoint - Semiconductor stocks are experiencing a rebound, with companies like SMIC and Hua Hong Semiconductor reporting better-than-expected earnings for Q2 2025, driven by high capacity utilization and domestic demand [1] Group 1: Company Performance - SMIC's stock rose by 3.18% to HKD 50.25, while Hua Hong Semiconductor increased by 3.02% to HKD 43.66, indicating positive market sentiment towards these companies [1] - Both SMIC and Hua Hong Semiconductor exceeded market expectations in revenue and gross margin due to high capacity utilization rates [1] - For Q3 2025, SMIC and Hua Hong Semiconductor forecast revenue growth of 6% and 11% quarter-on-quarter, respectively, suggesting a gradual recovery in semiconductor demand [1] Group 2: Market Trends - The pricing environment is improving, and capacity utilization remains high, although gross margin recovery may still be distant [1] - The trend towards domestic substitution of key semiconductor products is expected to benefit SMIC, reinforcing its leading position in the domestic wafer foundry market [1] - Hua Hong Semiconductor is anticipated to experience a recovery due to improvements in the domestic market and the industrial and automotive sectors [1]