Ge Long Hui A P P·2025-08-28 15:53Core Viewpoint - Semiconductor company SMIC reported strong financial results for the first half of the year, with significant revenue and profit growth, leading to a surge in stock prices and market capitalization [2][10]. Financial Performance - The company achieved a revenue of 32.348 billion RMB, representing a year-on-year growth of 23.1% [4][6]. - Net profit reached 2.3 billion RMB, an increase of 39.8% compared to the previous year [4][6]. - The gross profit was 9.56 billion USD, showing a substantial increase of 89.3%, with a gross margin improvement from 13.8% to 21.4% [5][6]. Stock Market Reaction - SMIC's H-shares rose over 10% to 62.3 HKD, while A-shares increased by more than 17% to 119.22 RMB, marking a historical high [2][3]. - The total market capitalization reached 952.129 billion RMB, nearing the 1 trillion RMB mark [2]. Business Segmentation - Revenue from the Chinese market increased from 80.9% to 84.2% of total revenue, while the U.S. market share decreased to 12.7% [9]. - The share of revenue from smartphones declined from 31.5% to 24.6%, while consumer electronics increased from 33.4% to 40.8% [7][9]. - The revenue contribution from 12-inch wafers rose to 77.1%, while 8-inch wafers decreased to 22.9% [8]. Market Position - SMIC ranks second globally among pure wafer foundries and first among companies in mainland China [10]. - The company anticipates continued growth in the semiconductor industry, particularly in AI, automotive chips, and domestic equipment sectors [11][12]. Future Outlook - For the third quarter, SMIC projects a revenue growth of 5%-7% quarter-on-quarter, with expectations for increased shipment volumes and average selling prices [12][13]. - The company aims to maintain a gross margin of 18%-20% despite rising depreciation costs [13]. - SMIC is focused on performance growth, new application development, and deepening collaborations in research and education [15].