Investment Rating - The report maintains a "Buy" rating for the company with a target price of 43.0 HKD [7][8]. Core Views - The company reported Q1 2025 revenue of 541 million USD, a year-over-year increase of 17.6% and a quarter-over-quarter increase of 0.3%, driven by increased wafer shipments [16][20]. - The gross margin for Q1 2025 was 9.2%, up 2.8 percentage points year-over-year but down 2.2 percentage points quarter-over-quarter due to depreciation from new production lines [16][20]. - The company expects Q2 2025 revenue to be between 550 million and 570 million USD, with a gross margin guidance of 7% to 9% [21]. Summary by Sections Revenue and Profitability - Q1 2025 revenue reached 541 million USD, with wafer shipments of 1.231 million pieces, reflecting a 20% year-over-year increase [16][20]. - The company anticipates a stable ASP (Average Selling Price) throughout the year, with potential for price increases in 12-inch products as capacity ramps up [3][5]. Capacity and Production - The production capacity utilization rate was 102.7% in Q1 2025, with the second 12-inch production line expected to ramp up steadily [2][21]. - The company plans to shorten ramp-up times and increase shipment volumes to stabilize gross margins [2]. Market Trends and Product Segments - The company is benefiting from local production trends accelerated by tariffs, particularly in the analog and power management segments, which saw a 34.8% year-over-year revenue increase [4][26]. - The 12-inch wafer segment generated 310 million USD in Q1 2025, a 40.8% year-over-year increase, while the 8-inch segment saw a decline [24][22]. Financial Forecasts - The report projects revenue growth of 8.2%, 13.1%, and 11.7% for 2025, 2026, and 2027, respectively, with net profit estimates of 52 million, 82 million, and 97 million USD for the same years [18][19]. - The target price of 43.0 HKD is based on a 1.5x multiple of the 2025 estimated book value per share [5][29].
华虹半导体（01347）：九厂放量有望推动收入稳步增长