SMIC(SH:688981) Shenwan Hongyuan Securities·2025-03-28 04:45Investment Rating - The report maintains a "Buy" rating for the company [2] Core Views - The company reported a Q4 2024 revenue of 15.917 billion yuan, a year-on-year increase of 31%, with a gross margin of 21.1% [5] - For the full year 2024, the company achieved a revenue of 57.796 billion yuan, a year-on-year growth of 27.7%, while the net profit attributable to shareholders was 3.699 billion yuan, a decline of 23.3% [5] - The company is positioned as the second-largest foundry globally, surpassing UMC and GlobalFoundries, with a market share increase to 6.22% [8] - The company is expected to maintain high capital expenditures, with a forecasted capital expenditure of 7.33 billion USD for 2024, and a similar level for 2025 [8] - The average selling price (ASP) of products increased by 8.3% to 1,108 USD per wafer due to product mix changes [8] Financial Data and Profit Forecast - Revenue projections for the company are as follows: - 2023: 45.25 billion yuan - 2024: 57.796 billion yuan - 2025E: 69.951 billion yuan - 2026E: 77.970 billion yuan - 2027E: 86.133 billion yuan - The net profit attributable to shareholders is projected to be: - 2025E: 5.824 billion yuan - 2026E: 6.812 billion yuan - 2027E: 7.691 billion yuan [7][10] - The company’s return on equity (ROE) is expected to improve from 2.5% in 2024 to 4.6% by 2027 [7]