TSMC(US:TSM) Huaan Securities·2024-10-21 01:41Investment Rating - The investment rating for the company is "Buy" (maintained) [1] Core Views - The company's revenue for Q3 2024 increased by 39% year-on-year, with net profit and diluted earnings per share both rising by 54% [1] - For Q3 2024, revenue reached $23.5 billion, representing a 36% year-on-year growth and a 12.9% quarter-on-quarter increase [1] - The strong performance in Q3 2024 was primarily driven by demand from smartphones and AI-related sectors, particularly from the leading 3nm and 5nm technologies [1] Financial Performance - Revenue for 2023 was NT$2,161,736 million, with a projected increase to NT$2,876,265 million in 2024, reflecting a year-on-year growth of 33.05% [2] - Net profit for 2023 was NT$838,498 million, expected to rise to NT$1,172,772 million in 2024, indicating a year-on-year growth of 39.87% [2] - The company’s gross margin for Q3 2024 was 57.8%, up from 53.2% in Q2 2024, while operating margin was 47.5% compared to 42.5% in Q2 2024 [1] Future Outlook - Management expects Q4 2024 revenue to be between $26.1 billion and $26.9 billion, with gross margin projected between 57% and 59% [1] - The contribution from 3nm and advanced technologies accounted for 69% of total wafer revenue in Q3 2024 [1] - The company anticipates that revenue from server AI processors will triple in 2024, contributing to a mid-teens percentage of total revenue [1] Regional Contribution - In Q3 2024, North American customers contributed 71% of total revenue, while China, Asia-Pacific, Japan, and EMEA contributed 11%, 10%, 5%, and 3% respectively [1]