SMIC 0981

[winston]

not vested

GM beat on high utilisation; cautious on 4Q as depreciation rises

3Q25 revenue rose 9.7% y/y; GM 22% on higher utilisation and richer mix; net profit increased 29% y/y, in line

4Q25 guidance: Revenue +9% y/y and GM 18-20%, GM slight miss to reflect handset seasonality, memory supply, pricing uncertainty and higher depreciation from new tools ramps

FY26F/FY27F earnings cut by 17.7%/18.8% to reflect lower GM guidance and ramp cost drag

Maintain BUY on H shares (TP HKD88.8) and HOLD on A shares (TP RMB116.0).

Re-rating drivers: Domestic substitution, specialty and packaging advancement

Source: DBS

https://www.dbs.com/insightsdirect/comp ... ecid=28655

[winston]

not vested

SMIC's net profit jump 61pc to US$172.8m, beats expectation

[quote]
SMIC's net profit jump 61pc to US$172.8m, beats expectation.

Its revenue rose 12.8 percent to US$2.49 billion, driven by the 26.3 percent increase in wafer shipments and product mix change, also surpassing the market expectation.

Gross margin was 19.2 percent, compared to 22 percent in the third quarter, due to the increase in depreciation.

Unaudited full-year net profit jumped 39.1 percent year-on-year to US$685.1 million in 2025, mainly due to the increase in wafer shipment and utilization rate, and product mix change.

Total unaudited revenue rose 16.2 percent to US$9.33 billion amid the reshuffling effects driven by the shift toward localization of the semiconductor industry chain over the full year in 2025.

Forecasted that its revenue will be flat in the first quarter of 2026, with gross margin to range from 18 to 20 percent.

Source: The Standard

https://www.thestandard.com.hk/market

[winston]

not vested

<Research>G Sachs: SMIC (00981.HK) 1Q Rev. Guidance in Line; Gross Margin Guidance Below Forecasts

SMIC (00981.HK)'s 4Q25 revenue rose by 4% QoQ to US$2.5 billion, 3% higher than both the expectations of Goldman Sachs and the market, and surpassing management's guidance of 0-2% growth, Goldman Sachs released a research report saying.

Management guided 1Q26 revenue to remain flat QoQ, largely in line with the forecasts of the broker/ market of 2% growth/ flat performance.

1Q26 gross margin guidance remains at 18-20%, slightly below the predictions of the broker/ market of 21.7%/ 20.9%.

Related News: SMIC 4Q25 NP Hikes 60.7% YoY

Therefore, Goldman Sachs kept rating at Buy on SMIC, with a target price of $134 for SMIC's H-shares, equivalent to a projected 2028 PE ratio of 71.6x.

The broker's target price is RMB241.6 for SMIC's A shares, based on a H-share valuation premium of 196%.

Goldman Sachs held a positive long-term growth outlook for the Company, driven by demand growth from local fabless clients and AI opportunities.

Source: AASTOCKS Financial News

http://www.aastocks.com/en/stocks/news/ ... -news/AAFN

[winston]

<Research>G Sachs: SMIC (00981.HK) 4Q25 OP Beats

Goldman Sachs released a report stating that the operating profit of SMIC (00981.HK) for 4Q25 beat expectations, and the revenue guidance for 1Q26 met expectations.

The broker anticipated that the company will benefit this year from growing domestic customer demand, continuous capacity expansion and product mix optimization.

The demand growth for high-margin products is expected to surpass that of traditional products.

In 2025, the company added a weekly capacity of 49,000 wafers (based on 12-inch wafers) while maintaining strong wafer yields, reflecting demand growth driven by the AI boom, supply chain restructuring opportunities, and the trend of "localized production".

Related News - CLSA: SMIC 1Q Rev. Guidance in Line with Mkt Consensus; GPM Guidance Slightly Misses

Based on a bullish growth outlook, Goldman Sachs expected SMIC to continue expanding production and advancing the transfer of advanced process technology. The target price was set at HKD134, with a Buy rating.

Source: AASTOCKS Financial News

http://www.aastocks.com/en/stocks/news/ ... -news/AAFN

[winston]

not vested

<Research>M Stanley: SMIC (00981.HK) Benefits from CN AI Compute Build-out; Rating Kept at Overweight

SMIC (00981.HK) is structurally well-positioned to benefit from the construction of AI compute power in mainland China, which helps offset the cyclical fluctuations in consumer demand, Morgan Stanley issued a research report saying.

Therefore, the broker kept rating at Overweight on the Company and a target price of $80.

SMIC guided its 1Q26 revenue to be flat QoQ, with a gross margin of 18-20%, slightly below forecasts, Morgan Stanley added.

This reflects a cautious stance among some consumer-facing clients amid the upcycle of memory prices and concerns over visibility of end-demand.

Source: AASTOCKS Financial News

http://www.aastocks.com/en/stocks/news/ ... -news/AAFN

[winston]

not vested

<Research>Nomura Keeps Neutral on SMIC, Expects Mid to High Double-Digit Rev. Growth This Yr

Nomura's research report indicated that SMIC (00981.HK) met expectations for wafer revenue and gross margin in 4Q25.

The company guided that revenue for 1Q26 will remain flat QoQ, with a gross margin between 18-20%, which also aligns with the broker's expectations.

Management anticipates that the full-year revenue growth for 2026, will exceed the average level of comparable peers, and Nomura believes the actual growth will reach mid to high double digits.

Related News - M Stanley: SMIC (00981.HK) Benefits from CN AI Compute Build-out; Rating Kept at Overweight

The broker has kept a Neutral rating on SMIC, with a target price of HKD75.

Source: AAStocks Financial News

http://www.aastocks.com/en/stocks/news/ ... -news/AAFN