中芯国际_第二季度营收_毛利率小幅超预期；产能利用率提升至 90% 以上；第三季度营收指引重回环比增长-SMIC (0981.HK)_ 2Q Rev_ GM slight beat; UT rate increased to 90%+; 3Q Rev guidance regain QoQ growth

Summary of SMIC (0981.HK) 2Q25 Earnings Call Company Overview - Company: Semiconductor Manufacturing International Corporation (SMIC) - Ticker: 0981.HK - Industry: Semiconductor Foundry Key Financial Highlights - 2Q25 Revenue: US$2.2 billion, representing a 16% YoY increase and a 2% QoQ decrease. This figure was 4% higher than Goldman Sachs estimates (GSe) and 2% above Bloomberg consensus [1][2] - Gross Margin (GM): 20.4%, slightly above management's guidance and expectations, but down from 22.5% in 1Q25 and 13.9% in 2Q24 [1][2] - Operating Profit: US$151 million, which is 20% lower than GSe and 13% below consensus estimates [2] - Net Profit: US$132 million, a 30% QoQ decline and 19% YoY decline, but higher than GSe's estimate of US$105 million [2] - Capex: Increased to US$1.9 billion in 2Q25 from US$1.4 billion in 1Q25 [1] Capacity and Utilization - Capacity: Increased to 991k wpm (8'' equivalent) in 2Q25, up from 973k wpm in 1Q25 [2] - Utilization Rate (UT): Improved to 92.5% in 2Q25 from 89.6% in 1Q25 [1][2] 3Q25 Guidance - Revenue Guidance: Expected to increase by 5% to 7% QoQ, aligning with GSe and consensus estimates [1][6] - Gross Margin Guidance: Projected to be between 18% and 20%, slightly lower than GSe (20.6%) and consensus (21.1%) [1][6] Investment Thesis - Long-term Growth: Positive outlook on SMIC's growth driven by increasing demand from local fabless customers. Anticipated recovery in margins due to improved UT rates [1][7] - Valuation: Shares are considered attractively valued as they trade below historical average P/E ratios. A Buy rating is maintained for SMIC [1][8] Price Target and Risks - 12-Month Price Target: HK$63.70 for H-shares and Rmb160.00 for A-shares, based on a 36x 2028E P/E and a 273% premium over H-shares [8][11] - Key Risks: 1. Weaker-than-expected demand in smartphones and consumer electronics [9] 2. Slower-than-expected product diversification and capacity expansions [9] 3. Restricted access to certain equipment/material supply due to being on the US BIS Entity List [10] Conclusion - SMIC's performance in 2Q25 shows resilience with slight beats in revenue and gross margin despite a decline in net profit. The company is positioned for growth in the upcoming quarters, supported by local demand and capacity improvements. The investment outlook remains positive with a maintained Buy rating.