Investment Rating - The investment rating for the company is upgraded to "Buy" [2][6]. Core Views - The valuation has returned to a low level, and there is a continuous trend of improvement in the fundamentals. The price increase of 8-inch and 12-inch wafers is driving profit improvement, although some of this is offset by operational costs from the new factory [6]. - The company's revenue and net profit for Q2 2024 were slightly below market expectations, but the gross margin exceeded expectations [7]. - The company has indicated that ASP (Average Selling Price) and gross margin improvements will be more evident in Q4 2024, following price increases initiated in June 2024 [8]. Financial Summary - For 2024, the company expects revenue of $2.009 billion, a decrease of 12.1% year-over-year, with a net profit of $89 million, reflecting a significant decline of 68.1% [9]. - The gross margin is projected to be 11.0% for 2024, improving to 21.9% by 2026 [9]. - The company’s earnings per share (EPS) are forecasted to be $0.11 in 2024, $0.17 in 2025, and $0.26 in 2026, with corresponding P/E ratios of 23.4x, 14.6x, and 9.4x respectively [9].
华虹半导体：港股公司信息更新报告：估值重回低位，基本面改善趋势持续