Shenwan Hongyuan Securities·2025-11-17 09:16Investment Rating - The report maintains a "Buy" rating for the company [2] Core Insights - The company reported Q3 revenue of $2.382 billion, a year-over-year increase of 9.7% and a quarter-over-quarter increase of 7.8%, exceeding guidance [5] - The net profit attributable to shareholders was $192 million, reflecting a year-over-year growth of 28.9% and a quarter-over-quarter growth of 44.7% [5] - The gross margin for Q3 was 22%, up 1.6 percentage points quarter-over-quarter, also above the guidance range of 18%-20% [5] - For the first three quarters of 2025, total revenue reached $6.838 billion, a year-over-year increase of 17.4%, with a gross margin of 21.6%, up 5.3 percentage points year-over-year [5] Financial Data and Profit Forecast - The company expects total revenue for 2025 to be $6.6755 billion, with a year-over-year growth rate of 15.5% [7] - The net profit forecast for 2025 is adjusted to $5.123 billion, representing a year-over-year growth of 38.5% [7] - The earnings per share (EPS) for 2025 is projected at 0.64 yuan, with a price-to-earnings (PE) ratio of 185 [7] - The gross margin is expected to be 21.9% for 2025, with a return on equity (ROE) of 3.4% [7] Operational Highlights - The overall utilization rate for Q3 was 95.8%, an increase of 3.3 percentage points quarter-over-quarter [8] - The average selling price (ASP) for wafers increased by 3.1% to $953 per wafer [8] - Revenue from the industrial and automotive sectors increased by 21% quarter-over-quarter, indicating strong demand in these areas [8] - The company plans to increase capital expenditures in Q4, with depreciation and amortization costs rising to $996 million, a year-over-year increase of 19.8% [8]