SMIC's Q3 revenue hits a record high, with net profit increasing by 56% year-on-year to 1.06 billion yuan | Financial Report Insights
SMIC's Q3 2024 earnings report shows revenue of 15.609 billion yuan, a year-on-year increase of 32.5%, and a net profit of 1.059 billion yuan, a year-on-year increase of 56.4%. The company achieved over 2 billion USD in single-quarter revenue for the first time, with a gross margin rising to 20.5%. Despite the strong performance in Q3, net profit for the first three quarters decreased by 26.4% year-on-year. Q4 revenue is expected to remain flat to grow by 2% quarter-on-quarter, with a gross margin between 18% and 20%
Thanks to the steady growth in wafer production capacity and sales, SMIC's revenue and profit in the third quarter both increased year-on-year, with revenue for the first time surpassing the $2 billion mark in a single quarter according to GAAP.
On the evening of November 7th, Thursday, SMIC announced its Q3 performance report for the fiscal year 2024.
1) Key Financial Data:
Revenue: The company's Q3 revenue was 15.609 billion yuan, a year-on-year increase of 32.5%, with wafer sales increasing by 38% year-on-year to 2.122 million pieces.
Profit: The company's Q3 net profit attributable to shareholders was 1.059 billion yuan, a year-on-year increase of 56.4%, with basic earnings per share increasing by 44.4% year-on-year to 0.13 yuan/share.
R&D Investment: The company's Q3 R&D investment increased by 2.8% year-on-year to 1.274 billion yuan, accounting for 8.2% of total revenue, a year-on-year decrease of 2.3 percentage points.
Other Indicators: The company's Q3 gross margin improved to 20.5%, overall capacity utilization reached 90.4%, and monthly production capacity increased by 11.1% year-on-year to 884,000 pieces.
2) Business Revenue Data:
By Application: Revenue from the smartphone business accounted for 24.9% of total revenue, a year-on-year decrease of 1 percentage point; revenue from computers and tablets accounted for 16.4%, a significant year-on-year decrease of 12.8 percentage points; revenue from consumer electronics, however, increased significantly by 18.5 percentage points to 42.6%.
By Size: Revenue from 8-inch wafers accounted for 21.5%, a year-on-year decrease of 4.5 percentage points, while revenue from 12-inch wafers accounted for 78.5%.
The financial report shows that according to International Financial Reporting Standards, the company's Q3 revenue increased by 14% quarter-on-quarter, reaching $2.17 billion, surpassing the $2 billion mark for the first time in a single quarter, setting a new historical high.
The company also added that this quarter added 21,000 pieces of 12-inch wafer monthly production capacity, further optimizing the product structure, and the average selling price increased.
However, despite the strong performance in Q3, the cumulative net profit for the first three quarters decreased by 26.4% year-on-year, primarily due to changes in the market environment and intensified competition.
In terms of performance guidance, SMIC expects Q4 revenue to grow by 2% year-on-year, in line with the guidance from the previous quarter, and expects Q4 gross margin to be between 18%-20%. As of today's close, SMIC's A-shares and H-shares rose by 6.09% and 5.02%, respectively, closing at CNY 101.89 per share and HKD 28.25 per share. The A-share price has increased by 92.17% year-to-date, while the H-share price has risen by 42.25% this year.
