Guan Cha Zhe Wang·2025-11-14 03:07Core 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][2]. Financial Performance - Q3 revenue reached 171.62 billion yuan, a year-on-year increase of 9.9%, with a gross margin of 25.5%, up 4.8 percentage points from the previous quarter [2][3]. - For the first three quarters, total revenue was 495.1 billion yuan, reflecting an 18.2% year-on-year growth [3]. - Q3 net profit attributable to shareholders was 15.17 billion yuan, a 43.1% increase year-on-year, while net profit for the first three quarters was 38.18 billion yuan, up 41.1% [3][4]. Capacity and Market Dynamics - The production capacity utilization rate increased to 95.8%, indicating near-full production [2][3]. - The memory market is experiencing a supply shortage, leading to significant price increases, and the expansion of industry capacity is expected to accelerate in the coming year [2][5]. Q4 Guidance - The company anticipates Q4 revenue to remain flat or grow by 2% quarter-on-quarter, with a gross margin forecast of 18%-20%, indicating a potential decline from Q3's 25.5% [4][5]. - The management attributes the expected slowdown in Q4 performance to the traditional off-season and fluctuations in the mobile market, leading to cautious purchasing behavior in related industries [5].