Hua Er Jie Jian Wen·2025-11-14 01:30Core Viewpoint - SMIC is on track for a record revenue year, expecting to exceed $9 billion for the first time, driven by strong demand and full-capacity operations [1] Financial Performance - Q3 revenue reached 171.62 billion yuan, a year-on-year increase of 9.9% and a quarter-on-quarter growth of 6.9% [2][3] - Gross margin for Q3 was 25.5%, significantly up by 4.8 percentage points from the previous quarter [2][3] - Net profit attributable to shareholders for Q3 surged by 43.1% to 15.17 billion yuan, with a year-to-date net profit of 38.18 billion yuan, reflecting a 41.1% increase [2][3] - Capacity utilization rate rose to 95.8%, indicating strong demand [2][3] Future Outlook - Despite a seasonal slowdown in Q4, SMIC's management anticipates revenue growth of 0% to 2%, aligning with market expectations [1][3] - The projected gross margin for Q4 is expected to decline to between 18% and 20%, down approximately 6 percentage points from Q3 [3] Market Position - The company is benefiting from a supply-demand imbalance in the memory market, with prices significantly increasing [1] - Goldman Sachs maintains a "Buy" rating on SMIC, citing long-term growth potential driven by local demand and AI-related opportunities, with a target price of 117 HKD and 211 RMB [1]