SMIC(688981) 长城证券·2024-05-14 07:32Investment Rating - The report maintains a "Buy" rating for the company, indicating an expected stock price increase of over 15% relative to the industry index in the next six months [2][27]. Core Views - The company is positioned as a leading domestic wafer manufacturer with advanced mature process technology, benefiting from a significant increase in demand from Chinese smartphone manufacturers [2][20]. - The revenue guidance for Q2 2024 indicates a median growth of 6% quarter-on-quarter, driven by strong demand in the consumer electronics sector [15][16]. - The company expects its 2024 revenue growth to exceed the industry average of 8%, with a projected year-on-year revenue increase of 19.3% for the first half of 2024 [17][18]. Summary by Sections Financial Performance - In Q1 2024, the company reported revenue of 1.855 billion, representing an 18.9% year-on-year increase [15][16]. Market Outlook - The company expects Q3 2024 to outperform expectations, with a full-year revenue growth forecast exceeding the industry average of 8% [17]. - The anticipated growth is attributed to increased demand from Chinese smartphone manufacturers, recovery in international consumer markets, and additional orders related to the upcoming Olympics [16][17]. Capital Expenditure - The report maintains the expectation for 2024 capital expenditures to remain stable compared to 2023, with a planned capital expenditure of approximately $7.466 billion [18][19].