Shenwan Hongyuan Securities·2025-08-08 07:41Investment Rating - The investment rating for the company is "Buy" (maintained) [2] Core Views - The company reported Q2 revenue of $2.209 billion, a year-over-year increase of 16.2%, and a quarter-over-quarter decrease of 1.7%, exceeding guidance [5] - The gross margin for Q2 was 20.4%, which is better than the guidance range of 18%-20% [5] - The company expects Q3 to return to stable growth with a projected revenue increase of 5%-7% quarter-over-quarter [8] Financial Data and Profit Forecast - Total revenue forecast for 2025 is $65.823 billion, with a year-over-year growth rate of 13.9% [7] - Net profit for 2025 is projected at $5.093 billion, reflecting a year-over-year increase of 37.7% [7] - Earnings per share for 2025 is estimated at ¥0.64 [7] Operational Highlights - The overall utilization rate for Q2 was 92.5%, with a quarter-over-quarter increase of 2.9 percentage points [8] - The average selling price (ASP) for wafers decreased by 5.7% to $924 per piece [8] - The company’s 8-inch wafer revenue increased by 6.6% quarter-over-quarter, contributing significantly to Q2 revenue [8] Market Segmentation - Revenue from the industrial and automotive sectors increased, with the U.S. customer revenue share continuing to rise [8] - The revenue breakdown shows that smartphones accounted for 25.2% of total revenue, while consumer electronics remained the largest segment at 41% [8] Capital Expenditure and Depreciation - Capital expenditure for Q2 was $1.885 billion, an increase from Q1 [8] - Depreciation and amortization costs for Q2 were $879 million, reflecting a year-over-year increase of 10.2% [8] Adjusted Profit Forecast - The profit forecast for 2025-2027 has been adjusted to $50.93 billion, $64.08 billion, and $72.21 billion respectively [8] - The corresponding price-to-earnings ratios for 2025-2027 are projected at 142, 113, and 100 [8]