TSMC(US:TSM) INDUSTRIAL SECURITIES·2024-08-07 01:31Investment Rating - The report maintains a "Buy" rating for the company [1] Core Insights - The company's Q2 2024 revenue reached NT$673.5 billion, a year-on-year increase of 40.1% and a quarter-on-quarter increase of 13.6%, exceeding the Factset consensus estimate of NT$659.5 billion [1] - The net profit attributable to shareholders for Q2 2024 was NT$247.9 billion, up 36.3% year-on-year and 9.9% quarter-on-quarter, also surpassing the Factset consensus estimate of NT$236.4 billion [1] - The company expects to benefit from the demand for advanced processes driven by smartphones and AI in Q3 2024, with revenue guidance between US$22.4 billion and US$23.2 billion [1] - The company is progressing well with its N2 process, which is expected to enter mass production in 2025, and anticipates better performance and profitability from N2P and A16 processes compared to N3 [1] - The company announced its Foundry 2.0 model, highlighting its potential in advanced packaging and testing beyond traditional foundry services [1] - The company is planning price increases for advanced processes and packaging in 2025, aiming to negotiate with key clients to reflect its value without damaging relationships [1] - Revenue projections for 2024, 2025, and 2026 are NT$280.22 billion, NT$358.72 billion, and NT$425.94 billion, respectively, with net profits of NT$108.48 billion, NT$142.21 billion, and NT$170.01 billion [1] Financial Summary - For 2024, the expected revenue is NT$280.22 billion, with a year-on-year growth of 30% [2] - The projected net profit for 2024 is NT$108.48 billion, reflecting a 29% increase year-on-year [2] - The company's gross margin is expected to remain stable at around 54% [4] - The return on equity (ROE) is projected to be 53% for 2024 [4] - Earnings per share (EPS) for 2024 is estimated at NT$209.23 [2][4]