Investment Rating - Buy rating with a target price of HKD 29 00 [2] Core Views - The company's 24Q3 performance showed significant improvement with a 5 3% QoQ revenue increase to 0 45 billion [2] - Annualized ROE improved by 1 6ppts YoY and 2 4ppts QoQ to 2 8% [2] - The company's capacity utilization rate reached 105 3% with 12-inch capacity utilization at 98 5% [2] - The company is expected to benefit from the domestic substitution trend in the semiconductor industry with a current P/B ratio of 0 7x [2] Financial Performance - 24Q3 revenue guidance is 415 per wafer [2] - The company's 2024-2026 revenue is forecasted to be 25 6 billion, and $28 5 billion respectively [2] Operational Highlights - Wafer shipments in 24Q3 increased by 8 5% QoQ to 1 2 million 8-inch equivalent wafers [2] - The Wuxi Phase II 12-inch fab is progressing smoothly with a planned capacity of 20K wafers per month by the end of 2025 [2] - The total planned capacity for the Wuxi Phase II project is 80K wafers per month [2] Industry Outlook - The company is expected to benefit from the recovery in demand for power management and CIS products [2] - The company's mature process capacity is less affected by US semiconductor sanctions [2] - The company is well-positioned to benefit from the domestic substitution trend in the semiconductor industry [2]
华虹半导体：稼动率进一步提升，均价企稳且修复可期