Shenwan Hongyuan Securities·2025-05-11 14:41Investment Rating - The report maintains a "Buy" rating for the company [1] Core Insights - The company reported a strong Q1 performance with revenue of $2.247 billion, a year-over-year increase of 28.4% and a quarter-over-quarter increase of 1.8%, marking the third consecutive quarter with revenue exceeding $2 billion, although it fell short of guidance [4] - The net profit attributable to shareholders reached $188 million, reflecting a significant year-over-year growth of 161.92% [4] - The gross margin stood at 22.5%, remaining stable compared to previous quarters and exceeding the guidance range of 19%-21% [4] - The company’s production capacity continues to improve, with a quarterly utilization rate of 89.6%, an increase of 4.1 percentage points quarter-over-quarter [7] - The average selling price (ASP) of wafers decreased by 11.5% to $980 per wafer due to production fluctuations from line adjustments [7] - The company’s revenue from the industrial and automotive sectors showed a rebound, with a quarter-over-quarter increase of 19.2% [7] - The company adjusted its profit forecasts for 2025-2027, projecting net profits of 53.29 billion, 67.94 billion, and 76.66 billion yuan respectively, with corresponding price-to-earnings ratios of 129, 101, and 89 [7] Financial Summary - For 2025, the company expects total revenue of 67.967 billion yuan, with a year-over-year growth rate of 17.6% [6] - The projected net profit for 2025 is 5.329 billion yuan, representing a year-over-year increase of 44.1% [6] - The gross margin is expected to be around 19.8% for 2025 [6] - The company’s return on equity (ROE) is projected to be 3.5% for 2025 [6]