HUA HONG SEMI(688347) 申万宏源·2024-08-23 02:07Investment Rating - The report maintains a "Buy" rating for the company [2] Core Views - The company's operational data has significantly improved, with a focus on expanding production capacity for long-term growth [2] - The second quarter of 2024 saw a year-on-year revenue decrease of 24.2% but a quarter-on-quarter increase of 4.0%, aligning with the company's guidance [2] - The gross profit margin improved to 10.5%, exceeding the previous quarter's guidance [2] Summary by Relevant Sections Revenue and Profitability - The company reported a total revenue of 478.5 million USD in Q2 2024, with a gross profit margin of 10.5% [2] - The net profit attributable to the parent company was 6.7 million USD, reflecting a 79.0% quarter-on-quarter increase [2] - Revenue guidance for Q3 2024 is set between 500-520 million USD, indicating a quarter-on-quarter growth of 4.5%-8.7% [2] Production and Capacity - The overall utilization rate for Q2 2024 was 97.9%, with 8-inch wafers at 107.6% and 12-inch wafers at 89.3% [2] - The company delivered 1,106K wafers, showing a year-on-year increase of 3% and a quarter-on-quarter increase of 7.8% [2] Product Performance - The embedded non-volatile memory segment saw a quarter-on-quarter increase of 15%, while power management products increased by 6% [2] - The 55/65nm process node achieved a year-on-year growth of 16.1%, with revenue contribution exceeding 20% [2] Financial Adjustments - The forecast for net profit attributable to the parent company has been adjusted to 733 million USD for 2024, 1.287 billion USD for 2025, and 1.999 billion USD for 2026 [2][3] - The price-to-earnings ratio is projected at 69X for 2024, 39X for 2025, and 25X for 2026 [2]