Semiconductor Manufacturing International (981) Q3 2024 earnings summary

Executive summary

• Q3 2024 revenue reached a record $2.171 billion, up 14.2% sequentially and 34.0% year-over-year, surpassing $2 billion in a single quarter for the first time.

• Gross margin improved to 20.5%, up 6.6 percentage points sequentially, driven by higher ASP and optimized product mix.

• EBITDA was $1.16 billion with a margin of 53.3%; net profit attributable to shareholders was $149 million, while net profit for the period was $223.3 million.

• Utilization rate rose to 90.4%, up 5.2 percentage points, aided by rapid ramp-up of new 12-inch capacity.

Financial highlights

• Operating profit for Q3 was $170 million, nearly doubling sequentially; net profit rose 58.3% year-over-year.

• Total assets at quarter-end were $47.2 billion; cash on hand was $12.6 billion.

• Net cash from operating activities was $1.24 billion; investing and financing outflows were $1.35 billion and $97 million, respectively.

• Capital expenditure for Q3 2024 was $1.18 billion, with depreciation and amortization at $831 million.

Outlook and guidance

• Q4 2024 revenue expected to be flat to up 2% sequentially; gross margin guided at 18–20%.

• Full-year 2024 revenue projected around $8 billion, up 27% year-over-year, with gross margin near 17%.

• Monthly capacity by year-end expected to reach 950,000 8-inch equivalent wafers.

• Management aims to stabilize market share and consolidate industry position.