SMIC(688981) 国投证券·2024-05-12 00:30Investment Rating - The report maintains a "Buy-A" investment rating for the company, with a target price of 46.06 CNY, reflecting a 70x PE for 2024 [5][6]. Core Insights - The company reported Q1 2024 revenue of 1.75 billion USD, exceeding guidance, with a quarter-over-quarter growth of 4.3% [2][3]. - The gross margin for Q1 2024 was 13.7%, also above guidance, despite a quarter-over-quarter decline of 2.7 percentage points [2][3]. - The company expects Q2 2024 revenue to increase by 5% to 7% quarter-over-quarter, with a projected revenue midpoint of 1.855 billion USD, representing an 18.9% year-over-year growth [3]. - The company anticipates that its full-year revenue growth will exceed the industry average of 8% [3]. Summary by Sections Q1 2024 Performance - Revenue reached 1.75 billion USD, with a quarter-over-quarter increase of 4.3%, surpassing the initial guidance of 0% to 2% [2]. - The company shipped 1.79 million 8-inch equivalent wafers, marking a 7% increase quarter-over-quarter [2]. - Capacity utilization improved to 80.8%, up four percentage points from the previous quarter [2]. Q2 2024 Outlook - The company is optimistic about Q2 2024, expecting a recovery in international consumer markets and increased orders for low-power Bluetooth and MCUs [3]. - The anticipated revenue for Q2 2024 is projected to be between 1.855 billion USD and 1.875 billion USD, with a gross margin expected to range from 9% to 11% [3]. Capital Expenditure - Capital expenditure for Q1 2024 was 2.235 billion USD, with expectations for the full year to remain flat compared to 2023's capital expenditure of 7.466 billion USD [4]. Financial Projections - Revenue projections for 2024 to 2026 are 53.062 billion CNY, 62.772 billion CNY, and 72.188 billion CNY, respectively, with net profits of 5.227 billion CNY, 6.507 billion CNY, and 7.434 billion CNY [5][9].