Investment Rating - The investment rating for the company is "Buy" (maintained) [3] Core Views - The company reported a revenue of 2.209 billion USD in Q2 2025, which is a 1.7% decrease quarter-over-quarter, better than the guidance of a 4% to 6% decline. The average selling price decreased by 6.4%, while the number of wafers sold increased by 4.3% to 2.39 million [6] - The company is experiencing significant growth in demand for analog chips, particularly in the smartphone fast charging and power management sectors, as domestic companies accelerate the replacement of foreign market shares [6] - The company expects a revenue growth of 5% to 7% in Q3 2025, with an anticipated increase in both shipment volume and average selling price [6] - By 2030, mainland China is projected to become the largest foundry center globally, with the company positioned to benefit from this trend [6] Financial Data and Valuation - The company’s projected revenues for 2025, 2026, and 2027 are 671.64 billion, 771.20 billion, and 876.37 billion CNY, respectively, with year-over-year growth rates of 16.2%, 14.8%, and 13.6% [6][8] - The projected net profit for the same years is 49.71 billion, 60.82 billion, and 69.35 billion CNY, with year-over-year growth rates of 34.4%, 22.4%, and 14.0% [6][8] - The gross margin for Q2 2025 was 20.4%, with an expected range of 18% to 20% for Q3 2025 [6] - The company’s capacity utilization rate was 92.5% in Q2 2025, an increase of 2.9 percentage points from the previous quarter [6]