August 14th, Guosen Securities' research report pointed out that the revenue and gross margin of Semiconductor Manufacturing International Corporation (SMIC, 688981.SH) in the second quarter exceeded expectations. In the third quarter, the revenue guidance given by the company is expected to increase by 13% to 15% on a quarter-on-quarter basis, and the gross margin is expected to be between 18% and 20%. Using the DCF valuation method, the target price is set at 60.14 yuan, maintaining a buy rating. In the first half of this year, the company added a considerable amount of effective capacity. In terms of an 8-inch wafer equivalent, SMIC's monthly capacity increased from 0.815 million pieces in 24Q1 to 0.837 million pieces in 24Q2. The new capacity was quickly put into production, and the company's comprehensive capacity utilization rate increased by 4 percentage points on a quarter-on-quarter basis, from 80.8% in 24Q1 to 85.2% in 24Q2. It is expected that by the end of this year, the company will have an overall increase of approximately 0.06 million pieces of 12-inch capacity compared to the end of last year. The recovery of the smart phone and consumer electronics market is gradually picking up momentum. In the second quarter, the company's growth momentum mainly comes from platforms widely used in consumer electronics and smart phones. The BCD platform, including power management, switch regulators, and LCD drivers, had a sales revenue growth of more than 20% on a quarter-on-quarter basis; the RF CMOS platform, including Bluetooth WiFi receivers and transceivers, had a sales revenue growth of nearly 30% on a quarter-on-quarter basis.