On August 12th, Guolonghui reported that Huatai Securities released a report stating that Semiconductor Manufacturing International Corporation's (SMIC) Q2 revenue increased by 8.6% quarter-over-quarter, with a gross margin of 13.9% and a capacity utilization rate that increased by 4.4% quarter-over-quarter to 85.2%. Revenue exceeded market expectations by 3%. The company expects Q3 revenue to increase by 13% to 15% quarter-over-quarter, with a gross margin of 18% to 20%. Its revenue guidance is significantly higher than that of UMC and Hua Hong. The median gross margin exceeds market expectations of 16%. The report noted that SMIC believes that the recovery of demand for consumer electronics and strong local production demand due to geopolitical factors are the main reasons for its strong performance growth. To reflect the growth in demand, the bank raised its revenue forecasts for 2024 and 2025 by 8.3% and 2.5%, respectively. At the same time, it raised its net income forecasts for 2024 to 2026 by 31.1%, 8.2%, and 17% to 0.762 billion, 0.79 billion, and 0.863 billion yuan, respectively. The target price was raised by 20% to HKD24, and the "buy" rating was maintained.