HUA HONG SEMI-华虹半导体：2024Q2业绩点评及业绩说明会纪要：业绩符合指引，产能接近满产行业复苏加速

Investment Rating - The report assigns a rating of "Hold" for Huahong Semiconductor (1347.HK) based on its performance and market conditions [1]. Core Views - The company's Q2 2024 performance met guidance with sales revenue of $478.5 million, reflecting a quarter-over-quarter increase of 4.02% but a year-over-year decline of 24.22% [1][3]. - Gross margin was reported at 10.5%, slightly above the previous guidance of 6%-10%, while net margin was -8.7% [1][3]. - The company anticipates Q3 2024 sales revenue to be between$ 500 million and $520 million, with a gross margin of 10%-12% [1][21]. Summary by Sections Overall Performance - Q2 2024 sales revenue reached$ 478.5 million, aligning with prior guidance of $470-500 million, with a quarter-over-quarter increase of 4.02% and a year-over-year decrease of 24.22% [1][3]. - Gross margin stood at 10.5%, up 4.1 percentage points quarter-over-quarter but down 17.2 percentage points year-over-year [1][3]. - Operating costs were$ 90.3 million, reflecting a quarter-over-quarter increase of 15.04% and a year-over-year increase of 17.82% [3]. Revenue Structure - By business type, semiconductor wafer sales accounted for $453.3 million, down 24.6% year-over-year, while other income was$ 2.5 million, down 17.3% [5][6]. - By wafer size, 8-inch wafer revenue was $245.5 million (51.3% of total), while 12-inch wafer revenue was$ 233.1 million (48.7% of total) [7][8]. - By region, revenue from China was $385.5 million (80.5% of total), North America$ 46.8 million (9.8%), Asia $28.1 million (5.9%), Europe$ 17.2 million (3.6%), and Japan $0.8 million (0.2%) [9][10]. Capital Expenditure - Capital expenditure for Q2 2024 was$ 196.8 million, with $128.4 million allocated to Huahong Manufacturing,$ 40.4 million to Huahong Wuxi, and $2.8 million to Huahong 8-inch [17][18]. Capacity and Utilization - Total monthly capacity for Q2 2024 was 391,000 wafers, with a utilization rate of 97.9%, up 6.2 percentage points quarter-over-quarter [19][20]. - The company expects to maintain a utilization rate above 95% throughout the year and into 2025 [27]. Q3 2024 Guidance - The company projects Q3 2024 sales revenue to be approximately$ 500-520 million, with a gross margin of 10%-12% [21][22]. Demand Outlook - Demand is primarily driven by the consumer electronics sector, with strong performance in RF, CIS, and power management ICs, particularly BCD, influenced by the AI industry [24]. - The company anticipates a gradual recovery in MCU and small automotive IC sectors, with expectations for improved performance in the second half of the year [24]. New Factory Progress - The new 12-inch production line at Huahong's seventh factory has reached a monthly capacity of 94,500 wafers, with stable mass production achieved across various technology platforms [25]. - The second 12-inch production line in Wuxi is expected to begin operations by the end of the year, with partial capacity release planned for Q1 2025 [25][28].