On August 12th, Guolonghui reported that Semiconductor Manufacturing International Corporation beat both its guidance and market expectations in the second quarter of this year, with revenue increasing 21.8% year-on-year to US$1.9 billion, a 8.6% increase from the previous quarter, exceeding the company's guidance of 5-7%, and gross margin reaching 13.9%, which is also higher than the guidance range of 9-11%. Although the quarterly net profit fell 59% year-on-year, it grew 129% quarter-on-quarter to US$0.165 billion, which was about 68% higher than market expectations. Looking ahead to the third quarter, the company's management predicts revenue will grow by 13-15% sequentially, and gross margin is expected to be between 18% and 20%, compared with the market's expectations of 2% growth and reaching 12.2%. CICC believes that the company's optimism about the third quarter reflects the increase in domestic demand and the continuing tight supply, and anticipates that capacity expansion, the increase in 12-inch wafer shipments, and product mix adjustments will help push average selling prices higher. SMIC expects revenue growth to exceed the industry average in fiscal year 2024, and CICC predicts annual growth to exceed 10%. It maintains its "outperform the market" rating and raises its target price from HKD 22.5 to HKD 23.