TSMC(US:TSM) Huachuang Securities·2024-10-23 01:41Investment Rating - The report indicates a strong performance with revenue exceeding guidance, suggesting a positive investment outlook for the company [1][2]. Core Insights - The company reported Q3 2024 revenue of NT$759.69 billion (US$23.5 billion), a year-over-year increase of 36% and a quarter-over-quarter increase of 12.9%, driven by strong demand in the smartphone and AI sectors for advanced processes [2][7]. - Gross margin for Q3 2024 was 57.8%, up 4.6 percentage points quarter-over-quarter and 3.5 percentage points year-over-year, benefiting from improved capacity utilization and cost optimization [2][7]. - Net profit attributable to shareholders reached NT$325.26 billion, reflecting a quarter-over-quarter increase of 31.2% and a year-over-year increase of 54.2% [2][7]. - The company expects Q4 2024 revenue to be between US$26.1 billion and US$26.9 billion, with a gross margin forecast of 57% to 59% [2][18]. Summary by Relevant Sections Overall Revenue Situation - Q3 2024 revenue was NT$759.69 billion (US$23.5 billion), exceeding the upper guidance of US$22.4-23.2 billion, driven by strong demand for 3nm and 5nm processes [2][7]. - Gross margin was 57.8%, surpassing the previous guidance of 53.5%-55.5% [2][7]. - Net profit margin was 42.8%, with a significant increase in earnings per share to NT$12.54 [2][7]. Revenue Breakdown by Market - Revenue by platform: Smartphones accounted for 34% (QoQ +16%), HPC 51% (QoQ +11%), IoT 7% (QoQ +35%), Automotive 5% (QoQ +6%), Digital Consumer Electronics 1% (QoQ -19%) [2][14]. Revenue Breakdown by Process Technology - Revenue from 3nm process accounted for 20% (QoQ +5 percentage points), 5nm for 32% (QoQ -3 percentage points), and 7nm for 17% [2][14]. - Advanced processes (7nm and below) contributed to 69% of total wafer revenue [2][14]. Capital Expenditure - Capital expenditure for Q3 2024 was approximately US$6.4 billion, with a full-year budget expected to exceed US$30 billion, focusing on advanced process technologies [2][12][20]. Inventory - Inventory days at the end of Q3 2024 were 87 days, an increase of 4 days, primarily due to stocking for 3nm and 5nm wafers [2][13]. Company Guidance - For Q4 2024, the company projects revenue between US$26.1 billion and US$26.9 billion, with a gross margin of 57%-59% [2][18].