SMIC 0981

[behappyalways]

US squeezes China's biggest chip-maker SMIC
https://www.bbc.com/news/technology-54324973

[winston]

not vested

SMIC revises up third quarter revenue forecast

Semiconductor Manufacturing International Corporation (0981) raised its third-quarter revenue forecast, expecting a 14-16 percent rise from a quarter ago, from 1-3 percent increase.

Gross margin for the three months ended September would be 23 percent to 25 percent as compared with the original guidance of 19 percent to 21 percent, the company said.

However, Goldman Sachs predicts revenue to drop by 6 percent in the third quarter, a 26-27 percent decline from the three months ended June.

Shares of SMIC pared a 7 percent gain on opening to around 1 percent, trading at HK$19.96 as of 2:30 pm.

Source: The Standard

https://www.thestandard.com.hk/breaking ... e-forecast

[winston]

not vested

SMIC profit soars to US$256m

by Winnie Lee

Semiconductor Manufacturing International (0981) said third-quarter net profit rose 211 percent year-on-year to US$256.4 million (HK$2.06 billion).

Basic earnings per share were 4 US cents.

Revenue rose 32.6 percent to US$1.08 billion as of the end of September. The gross profit margin fell 2.3 percentage points to 24.2 percent from a quarter ago.

The group expects revenue in the fourth quarter to decrease by 10 to 12 percent quarter-on-quarter. Meanwhile, the gross margin to 16 to 18 percent.

The company said it continues to evaluate the overall impact of US export restrictions on its production and operations.

The company is operating as usual, and though the export restrictions will have an impact, in the near-term, they are believed to be manageable.

Source: The Standard

https://www.thestandard.com.hk/section- ... to-US$256m

[winston]

not vested

SMIC says it is unable to keep up with customer demand amid chip industry shortage, sanction squeeze

by Josh Horwitz

In Q4 2020, SMIC reported sales of $981 million, up 16.9% year on year. However, the company expects revenue to increase in the "mid-to-high" single digits in 2021.

The company is aiming to expand its capacity this year at its 12-inch fabrication plant by 10,000 wafers per month and by 45,000 wafers per month at its 8-inch fabrication plant.

Source: Reuters

https://www.theedgemarkets.com/article/ ... on-squeeze

[winston]

not vested

SMIC(981)

Analysis：
SMIC`s (981) single-quarter revenue in the fourth quarter of 2021 exceeded US$1.5 billion for the first time, and the annual revenue was US$5.4 billion, an annual increase of 39%, making it the fastest growing company among the top four pure-play foundries in the world that year, and many financial indicators such as gross margin, operating margin, and net margin also hit record highs.

The Group expects revenue in the first quarter of 2022 to increase by 15% to 17% QoQ and gross margin to range from 36% to 38%, higher than the 35% gross margin in the fourth quarter of 2021. (I do not hold the above stock)

Strategy：
Buy-in Price: $20.50, Target Price: $22.50, Cut Loss Price: $19.50

Source: Phillips

[winston]

China’s top foundry SMIC says profits halved in first quarter, with ‘no sign’ of a full market recovery yet

Profits fell by 53.1 per cent year on year to US$267 million during the March quarter, while revenue dropped 20.6 per cent

The Shanghai-based company says it continues to expect a full-year revenue decline, although it will continue with its facility expansion

by Che Pan

Source: SCMP

https://www.scmp.com/tech/tech-war/arti ... covery-yet

[winston]

not vested

Citi Upgrades SMIC (00981.HK) to Neutral, TP Hikes to $21

2023/05/16

Citi Research upgraded SMIC (00981.HK) from Sell to Neutral, and lifted its target price from $16 to $21 in a report.

Citi noted that SMIC's first quarter revenue declined 10% QoQ and gross margin was 20.8%, which was in line with guidance.

Revenue for the second quarter is expected to grow by approximately 6% QoQ, with a 20% median gross margin, which is better than expected.

Citi suggested that SMIC's recent trough is over, with its better bottoming out momentum driven by increasing demand for new products from Mainland customers amidst the decoupling trend.

The broker also expected the chipmaker's mainland customer market share growth to continue in consumer applications, and that the inventory build will continue for several quarters.

Source: AAStocks Financial News

http://www.aastocks.com/en/stocks/analy ... 266663/all

[winston]

not vested

Daiwa Hikes SMIC (00981.HK) TP to $20, Rating Hold

2023/05/15

SMIC (00981.HK) delivered intact 1Q23 results, with in-line 2Q23 revenue growth and gross profit guidance, Daiwa said in its report.

Yet, in view of high depreciation on active capex to weigh on structural profitability and heightened geopolitics to risk SMIC's 28/ 22nm capacity build for potential market-share loss, Daiwa maintained SMIC at Hold with TP lifted from $17.3 to $20.

Source: AAStocks Financial News

http://www.aastocks.com/en/stocks/analy ... 266397/all

[winston]

not vested

JPM Lifts SMIC (00981.HK) TP to $21, Rates Neutral

2023/05/15

JPMorgan has increased the target price of SMIC (00981.HK) from $18 to $21 and maintained its Neutral rating in a report.

JPMorgan found SMIC's results broadly in line with expectations and noted that SMIC management has maintained its business guidance for the year.

In the face of weak overall demand, SMIC has recently seen improved demand dynamics in various areas.

JPMorgan nevertheless believed that the recovery may be slower in the second half of this year.

The broker further expected that rising depreciation resulting from aggressive capacity expansion, as well as some price reductions may keep its gross margins in the low range of 20% in the coming quarters.

Source: AAStocks Financial News

http://www.aastocks.com/en/stocks/analy ... 266369/all

[winston]

not vested

Jefferies Raises TP of SMIC (00981.HK) to $21.83, Rates Hold

2023/05/15

Jefferies has lifted the target price of SMIC (00981.HK) from $17.04 to $21.83 and maintained its Hold rating in a research report.

Jefferies found SMIC's first quarter revenue and gross margin higher than the broker's own and the market's expectations, while its next quarter revenue guidance was more than 7% higher than the market's forecast, and gross margin guidance was 1 percentage point higher than the market's estimation.

While Jefferies found semiconductor demand weak, management is still seeing urgent orders from new products or customers, which has driven capacity utilization rate to 100% on 28 or 40nm production lines.

Management also expected to see demand bottom out in the next quarter, but the broker forecasted still more room for average selling price downside.

In addition, the company planned to build a production capacity of 50,000 standard 12-inch wafers per month every year, which keeps planned capital expenditures high.

Based on the better-than-expected quarterly results and positive guidance for the next quarter, the broker has raised its 2023-24 revenue forecast by 5% and net income forecast by 13%.

Source: AAStocks Financial News