Ge Long Hui A P P·2025-12-17 08:54Core Viewpoint - The report from Zhongyou Securities indicates that the demand for "Local for local" remains strong, with high capacity utilization rates maintained. [1] Revenue Breakdown - In Q3 2025, the revenue of SMIC is categorized by region, with China, the US, and Eurasia accounting for 86%, 11%, and 3% respectively. [1] - The revenue from the China region saw a quarter-on-quarter increase of 11%, primarily due to accelerated industry chain transitions and increased demand from the domestic market. [1] Capacity Utilization and Guidance - The company's capacity utilization rate reached 95.8% in Q3 2025. [1] - Looking ahead to Q4, despite it being a traditional off-season with a slowdown in customer inventory buildup, the ongoing effects of industry chain transitions are expected to keep the season from being too weak. [1] - The revenue guidance for Q4 is projected to be flat to a 2% increase quarter-on-quarter, with production lines remaining fully loaded. [1] Profitability and Capital Expenditure - The gross margin guidance is set at 18%-20%, consistent with the guidance provided for Q3. [1] - The expected annual capital expenditure is projected to remain flat year-on-year, with an annual expansion of 50,000 12-inch wafers in monthly capacity. [1] - The company maintains a "Buy" rating. [1]