SMIC(688981) 第一财经研究院·2024-05-11 23:36Financial Data and Key Metrics Changes - In Q1 2024, the company reported revenue of 887 million, with an EBITDA margin of 50.7% [1] - The total assets stood at 17.3 billion and total equity of $30.8 billion [1] - The company plans for Q2 2024 sales revenue to grow by 5% to 7% and expects a gross margin of 9% to 11% [1][2] Business Line Data and Key Metrics Changes - The company achieved a production of 1.79 million 8-inch wafers in Q1, a 7% increase quarter-over-quarter [2] - Revenue from wafer sales constituted 93% of total revenue, with other income making up 7% [2] - The revenue breakdown by application showed smartphones and consumer electronics each accounted for 31%, while computers and tablets accounted for 18% [2] Market Data and Key Metrics Changes - Revenue distribution by region remained stable, with China accounting for 82%, North America for 15%, and Eurasia for 3% [2] - The company noted an increase in customer inventory levels and a rise in demand from domestic clients, contributing to improved sales performance [2] Company Strategy and Development Direction - The company is focusing on expanding its production capacity and enhancing market share, particularly in the integrated circuit manufacturing sector [1] - It aims to prioritize cash flow for core business activities, including capacity expansion and R&D, foregoing profit distribution for 2023 [1] - The company is developing technology platforms for various applications, including high-voltage drives and image sensors, to cater to diverse market needs [2] Management Comments on Operating Environment and Future Outlook - Management indicated that the integrated circuit industry is recovering, with improved customer inventory and demand [2] - The company expects to exceed the average growth of comparable companies and is optimistic about maintaining growth in the first half of the year [3] - There are concerns about competitive pricing pressures due to increased local production capacity in China [3] Other Important Information - The company is experiencing depreciation pressure due to high capital expenditures aimed at expanding 12-inch capacity [3] - The management acknowledged the need for a balanced global supply chain and anticipates continued investment in local capacities [7] Q&A Session Summary Question: How does product mix affect ASP and will price declines slow down in the coming quarters? - The ASP is influenced by both price trends and product mix changes. The company has faced production bottlenecks but maintains that overall ASP has not significantly declined since February [4] Question: What specific consumer products are expected to gain market share? - The company noted increased demand for low-power Bluetooth IoT and MCUs, driven by a recovering international consumer market and upcoming sports events [4] Question: What is the contribution of the 28nm process to the company? - The company has been producing 28nm since 2014 and continues to expand its capacity due to strong customer demand across various sectors [5] Question: What is the company's outlook on the global wafer foundry industry growth? - The company aims to exceed the average growth of comparable firms and is optimistic about maintaining a strong order book for the upcoming quarters [6] Question: Will capital expenditures continue throughout the year? - The company expects to maintain capital expenditures in the second half of the year, aligning with customer demand [7] Question: How does the company view the global semiconductor market's future? - The company acknowledges a projected growth in the semiconductor market, driven by new applications and demand, but cautions about uneven growth across different sectors [8]