Overall Performance - Semiconductor Manufacturing International (SMIC) reported a revenue of $2.2 billion for Q2 2025, slightly above market expectations of $2.16 billion, but a 1.7% decrease from the previous quarter, with guidance indicating a further decline of 4-6% [1][14] - The gross margin for Q2 2025 was 20.4%, reaching the upper limit of the guidance range (18-20%) and exceeding market expectations of 19.7% [1][4] Revenue and Pricing Dynamics - The decline in revenue was primarily attributed to a decrease in average selling prices, despite a 4.3% increase in product shipment volume [3][17] - The average selling price per wafer decreased by 5.7%, influenced by a higher proportion of lower-priced 8-inch wafer shipments [3][17] Business Segment Performance - Revenue from the smartphone segment grew by only 1.7%, significantly lower than the double-digit growth seen in the past two years, while other segments like PC and consumer electronics experienced declines [2][24] - The company maintained over 80% of its revenue from the domestic market, driven by domestic substitution trends [2][7] Expenditure and Capital Investment - Operating expenses increased, with management expenses rising by 17.6% year-on-year, primarily due to higher factory setup costs [2][31] - Capital expenditure for the quarter was $1.885 billion, indicating a commitment to maintaining high levels of investment despite weak downstream demand [2][31] Future Guidance - For Q3 2025, SMIC expects revenue to increase by 5-7%, translating to $2.32-$2.36 billion, which is below market expectations of $2.37 billion [4][19] - The gross margin guidance for the next quarter is set at 18-20%, lower than the market expectation of 21.1% [4][22] Capacity Utilization and Market Trends - The capacity utilization rate for Q2 2025 was 92.5%, reflecting a slight recovery, primarily due to preemptive stocking of 8-inch wafers by customers [2][22] - The overall semiconductor market remains weak, with cautious outlooks from management regarding demand visibility in the second half of the year [7][9] Regional Revenue Distribution - The revenue from the China region accounted for 84.1% of total revenue, with a slight decline of 1.9% quarter-on-quarter [29][31] - The company’s revenue from the U.S. and Eurasia regions remained relatively low at 12.9% and 3%, respectively [29][31]

2025.08. 08 微信编辑 | 七三 第一财经持续追踪财经热点。若您掌握公司动态、行业趋势、金融事件等有价值的线索，欢迎提供。 专用邮箱： bianjibu@yicai.com （注：我们会对线索进行核实。您的隐私将严格保密。） 推荐阅读 东风柳汽人士：首次还原"车头掉落"疑云与细节 1 e for 0 is ic : 1- aky i . - 30 : i . e s l 本文字数：266，阅读时长大约1分钟 作者 | 第一财经 宁佳彦 8日中芯国际电话会议上，管理层表示没有涨价，ASP（平均售价）上升是因为产能较满，12寸的晶圆没有折扣了。 "我们从来不是产业里第一家涨价的，但如果有可比同业涨价，我们会跟随"。管理层表示，会支持客户保持其市场份额，进行价格调整同时透露订单目 前比产能高。 ...

Group 1 - The management of SMIC stated that there will be no price increases, and the rise in Average Selling Price (ASP) is due to full capacity, with no discounts on 12-inch wafers [1] - The company mentioned that it has never been the first in the industry to raise prices, but will follow if comparable peers do increase their prices [1] - Management indicated that they will support customers in maintaining their market share while adjusting prices, revealing that current orders exceed production capacity [1]

Core Viewpoint - After a 16-week period of adjustment, Huahong Semiconductor (01347) has seen a strong rebound in its stock price, reversing the downward trend in the wafer foundry sector [1] Industry Overview - The wafer foundry sector has performed well this year, with major players Huahong Semiconductor and SMIC both experiencing significant increases, with Huahong's stock rising over 60% [1] - The valuation increase in the sector is attributed to strong performance, with Huahong reporting Q1 2025 revenue of $541 million, a year-on-year increase of 17.6% [1][2] - SMIC's revenue for the same period was $2.247 billion, up 28.4% year-on-year, with a net profit of $188 million, reflecting a staggering 162% increase [1][2] Company Performance - Huahong Semiconductor has achieved double-digit revenue growth for two consecutive quarters, with Q2 guidance indicating a growth rate of 15-20% [1] - The company has a total wafer capacity of 413,000 pieces, with an 8-inch wafer revenue of $231 million and a 12-inch wafer revenue of $310 million, the latter showing a significant year-on-year growth of 40.9% [2][4] - The company has maintained a high capacity utilization rate of 102.7% for 8-inch equivalent wafers, exceeding 100% for three consecutive quarters [4] Financial Metrics - Huahong's gross margin for Q1 2025 was 9.24%, while SMIC's was significantly higher at 22.52%, indicating a substantial gap in profitability [5] - Despite lower profitability, Huahong's strong cash flow performance is notable, with a net cash inflow of $50 million in Q1, contrasting with SMIC's net cash outflow of $160 million [6] - As of March 2025, Huahong had cash equivalents of $4.08 billion, while SMIC had $4.587 billion [6] Valuation and Market Sentiment - The market has assigned a price-to-book (PB) ratio of 2.19 to SMIC, while Huahong's PB ratio is only 1.25, indicating a 75% discount in valuation [7] - Analysts have mixed views on Huahong, with some downgrading its rating due to weak return on equity projections, while others have raised target prices based on expected product price improvements [9] - Overall, the wafer foundry sector is entering a new phase of upward trends, with Huahong's low valuation and improving quarterly performance presenting significant investment opportunities [9]

Core Viewpoint - Semiconductor Manufacturing International Corp (SMIC) reported disappointing earnings for Q1 2025, raising concerns about the future of "domestic chips" in the investment community [1][3]. Financial Report Analysis - SMIC's revenue for Q1 reached $2.247 billion, showing a slight sequential increase but falling short of previous projections and market expectations [4]. - The gross profit margin was better than expected at 22.5%, primarily due to increased shipment volumes of 8-inch wafers, which helped spread costs [5][6]. - However, the average product price declined due to a higher proportion of 8-inch wafer shipments, which are priced lower [4][5]. Guidance for Next Quarter - The guidance for the next quarter indicates a projected revenue decline of 4-6% and a gross margin drop to 18-20%, both below market expectations [5][6]. Core Indicators Analysis - Revenue growth in Q1 was driven by a 15.1% increase in shipment volume, while prices fell by 11.5% [5]. - The gross margin was supported by increased shipment volumes, but is expected to decline in the next quarter due to anticipated revenue drops [6]. - Capacity utilization rose to 89.6%, but this was mainly due to advance stocking of 8-inch wafers, with overall demand remaining weak [6]. Business Level Analysis - The consumer electronics sector remains the largest revenue contributor at 40.6%, supported by Chinese subsidy policies [7]. - The revenue share from 12-inch wafers was 78.1%, with a slight sequential decline, while 8-inch wafers saw a 14.9% revenue increase, highlighting their importance to SMIC [7]. - Domestic revenue accounted for 84.3% of total income, although this share has decreased, while revenue from the U.S. and Eurasia regions showed significant growth [8]. Operating Data Perspective - Operating expenses decreased to $196 million, primarily due to a reduction in R&D expenses [9]. - Inventory increased by 3% to $3.048 billion, while accounts receivable surged by 36.6% to $1.15 billion, indicating potential adjustments in operational strategy [10]. - EBITDA for the quarter was $1.29 billion, with a profit margin of 57.5%, but a significant portion of profits was consumed by depreciation and amortization [11].