China Post Securities·2025-09-23 11:06Investment Rating - The investment rating for the company is "Buy" and is maintained [1] Core Views - The company plans to acquire a 49% stake in SMIC North, which will enhance its profitability and operational efficiency. After the acquisition, SMIC North will become a wholly-owned subsidiary, allowing for better synergy in technology, customer networks, and supply chain management [4][13] - The company is experiencing increased demand for its 12-inch wafer production capacity, with an expected annual expansion of 50,000 wafers per month to meet global needs. This expansion is supported by a significant investment of approximately $7.5 billion annually, primarily for equipment purchases [5][13] - Revenue projections for the company are optimistic, with expected revenues of 67.71 billion yuan, 77.91 billion yuan, and 89.63 billion yuan for the years 2025, 2026, and 2027 respectively, alongside net profits of 5.13 billion yuan, 6.16 billion yuan, and 7.40 billion yuan for the same years [6][9] Company Overview - The latest closing price of the company's stock is 128.92 yuan, with a total market capitalization of 103.13 billion yuan. The company has a debt-to-asset ratio of 35.2% and a total share capital of 7.999 billion shares [3][4] - The company is recognized as a leading integrated circuit foundry in China, providing both 8-inch and 12-inch wafer foundry services, and is focused on creating a platform-based ecosystem to support its clients [12][13]