4Q23 revenue guidance in line; advanced foundry’s has already bottomed out
3Q23 net profit fell 80% y-o-y due to the persistent weakness in IoT-related products and margin shrinkage, below market expectations
Earnings forecast cut by 18%/34% in FY23F/FY24F to account for lower gross margins due to low utilisation rate
Management continued to guide a q-o-q increase c.1-3% in 4Q revenue and gross margin of 16-18%, largely in line
TP raised to HK$23.3 based on 1.1x FY24F P/BV, aligned with the bottoming out of the advanced foundry sector; maintain BUY on strong FY25F earnings rebound
