Investment Rating - The report maintains a "Buy" rating for the company, indicating a strong performance relative to the market [7][8]. 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 [4][7]. - The net profit attributable to shareholders for Q3 was $192 million, reflecting a year-over-year growth of 28.9% and a quarter-over-quarter growth of 44.7% [4][7]. - The gross margin for Q3 was 22%, which is above the guidance range of 18%-20% [4][7]. - 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 [4][7]. 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% [6]. - The net profit attributable to shareholders is projected to be $512.3 million in 2025, representing a year-over-year growth of 38.5% [6]. - The earnings per share (EPS) is forecasted to be $0.64 for 2025, with a gross margin of 21.9% [6]. - The company’s return on equity (ROE) is expected to improve to 3.4% in 2025 [6]. Operational Performance - The overall utilization rate for Q3 was 95.8%, with a quarter-over-quarter increase of 3.3 percentage points [7]. - The average selling price (ASP) for wafers increased by 3.1% quarter-over-quarter to $953 per wafer [7]. - The company’s 12-inch wafer production capacity increased, contributing significantly to revenue [7]. - The revenue contribution from the industrial and automotive sectors rose, with a quarter-over-quarter increase of 21% [7]. Capital Expenditure and Guidance - The company’s capital expenditure for Q3 was $2.394 billion, reflecting a quarter-over-quarter increase [7]. - For Q4, the company expects revenue to remain stable with a quarter-over-quarter growth of 0% to 2% and a gross margin between 18% and 20% [7].

Investment 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]