Investment Rating - The report maintains a "Buy" rating for the company, with a target price of 18.00 HKD based on a 13x PE valuation for 2026 [2][4][8]. Core Insights - The company's revenue for Q2 2024 was 479 million USD, a year-on-year decline of 24.2% but a quarter-on-quarter increase of 4.0%, aligning with guidance [1]. - The gross margin for Q2 2024 reached 10.5%, slightly above the upper guidance limit of 10%, and improved from 6.4% in Q1 2024, driven by increased capacity utilization [1]. - The company expects Q3 2024 revenue to be between 500-520 million USD, with a gross margin of 10%-12%, primarily driven by sales volume and price increases [1]. - Demand for power management, CIS, and logic IC products has increased, with analog and power management revenue up 25.7% year-on-year [1]. - The company is progressing well with its second 12-inch production line, expected to be operational by the end of 2024, with depreciation starting in 2025 [1]. Financial Summary - The forecasted net profit for the company from 2024 to 2026 is 95 million, 233 million, and 305 million USD respectively, with significant adjustments from previous estimates [2][8]. - The company's revenue is projected to decline from 2.022 billion USD in 2024 to 2.571 billion USD in 2025, before reaching 3.180 billion USD in 2026 [2][10]. - The gross margin is expected to recover from 11.7% in 2024 to 23.2% in 2026, reflecting improved operational efficiency [10].
华虹半导体：业绩温和复苏，产能利用率持续提升