not vested
JPM Upgrades SMIC (00981.HK) to Neutral, Raises TP to HKD67
JPMorgan issued a research report stating that SMIC (00981.HK) reported 1Q gross margin slightly above expectations, benefiting from selective price increases.
Its 2Q revenue guidance significantly exceeded expectations, reaching QoQ growth of 14% to 16%.
The bank noted that although AI-related demand and localization trends have driven price hikes for certain products such as BCD, analog chips, power management and memory products (together accounting for about 40% to 50% of revenue), with part of the impact already reflected in 1Q and to be further realized in 2Q, it also expects consumer electronics demand to weaken in 2H due to front-loaded shipments in 1H and higher end-product prices.
The bank raised its 2026 and 2027 earnings forecasts for SMIC by about 15% to reflect broader price increases.
It now expects EPS to reach USD0.1363 and USD0.1445 for 2026 and 2027, representing YoY growth of 59% and 6%, respectively.
Related News Citi Raises SMIC (00981.HK) and HUA HONG SEMI (01347.HK) TPs, Positive on 90-Day Performance
Despite risks to consumer demand in 2H, given the broader-than-expected scope of price hikes, JPM upgraded SMICs investment rating from Underweight to Neutral and raised its TP from HKD57 to HKD67, implying about 2.8x price-to-book ratio.
The bank believes a clearer margin recovery path (such as broader price increases sufficient to offset rising depreciation) would be needed to drive further re-rating, while downside risks stem from weaker-than-expected consumer demand weighing on pricing.
Source: AASTOCKS Financial News
http://www.aastocks.com/en/stocks/news/ ... -news/AAFN
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SMIC 0981
Re: SMIC 0981
by winston » Mon May 18, 2026 1:10 pm
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Re: SMIC 0981
by winston » Mon May 18, 2026 1:13 pm
not vested
<Research> CLSA Raises SMIC (00981.HK) TP to HKD94.1 on AI Demand Boosting Order
CLSA published a research report stating that SMIC (00981.HK) , (688981.SH) delivered 1Q results and 2Q guidance both above expectations.
Management expects full-year 2026 order momentum to remain strong, driven by AI demand, order repatriation to domestic foundries, emerging AI applications, import substitution and advance inventory build-up.
SMIC anticipates gross margin to improve steadily, with the price hike trend continuing through 2026.
Management expects the impact of price increases to gradually emerge in 2Q and become more evident in 3Q to 4Q.
However, depreciation expenses are projected to rise by more than 30% in 2026.
CLSA raised its 2026-2028 EPS forecasts for SMIC by 15%/15%/11% to reflect higher pricing, robust order growth and stronger gross margin assumptions.
Related News: SMIC 1Q NP Up 5% YoY to US$197M
The broker maintained its Outperform rating on SMIC H-shares, lifting the TP from HKD93.3 to HKD94.1.
It also maintained an Outperform rating on its A-shares, raising the TP from RMB152 to RMB153.4.
CLSA believes SMIC will benefit from AI-driven demand and the localization trend.
Source: AASTOCKS Financial News
http://www.aastocks.com/en/stocks/news/ ... -news/AAFN
<Research> CLSA Raises SMIC (00981.HK) TP to HKD94.1 on AI Demand Boosting Order
CLSA published a research report stating that SMIC (00981.HK) , (688981.SH) delivered 1Q results and 2Q guidance both above expectations.
Management expects full-year 2026 order momentum to remain strong, driven by AI demand, order repatriation to domestic foundries, emerging AI applications, import substitution and advance inventory build-up.
SMIC anticipates gross margin to improve steadily, with the price hike trend continuing through 2026.
Management expects the impact of price increases to gradually emerge in 2Q and become more evident in 3Q to 4Q.
However, depreciation expenses are projected to rise by more than 30% in 2026.
CLSA raised its 2026-2028 EPS forecasts for SMIC by 15%/15%/11% to reflect higher pricing, robust order growth and stronger gross margin assumptions.
Related News: SMIC 1Q NP Up 5% YoY to US$197M
The broker maintained its Outperform rating on SMIC H-shares, lifting the TP from HKD93.3 to HKD94.1.
It also maintained an Outperform rating on its A-shares, raising the TP from RMB152 to RMB153.4.
CLSA believes SMIC will benefit from AI-driven demand and the localization trend.
Source: AASTOCKS Financial News
http://www.aastocks.com/en/stocks/news/ ... -news/AAFN
It's all about "how much you made when you were right" & "how little you lost when you were wrong"
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Re: SMIC 0981
by winston » Tue May 19, 2026 8:30 am
Summary of Latest Ratings, TP, Views on SMIC from Brokers
Brokers | Ratings | TPs | Core Views
CLSA | Outperform | HKD93.3 -> 94.1/ RMB152 -> 153.4
1Q results were solid, with strong 2Q guidance. Benefiting from AI-driven demand, prices are expected to continue rising alongside margin improvement.
Related News: JPM Upgrades SMIC (00981.HK) to Neutral, Raises TP to HKD67
HSBC Research | Buy | HKD93 -> 89/ RMB153 -> 146
1Q gross margin beat expectations. 2Q revenue outlook has turned more optimistic on rising shipment volume and higher ASP.
BNP Paribas | Outperform | HKD86
1Q results met expectations, with upbeat 2Q guidance. Localization of AI chips will become a stronger driver, and SMIC is seen as a key beneficiary in advanced process nodes.
Citi | Neutral -> Buy | HKD75 -> 90
Domestic substitution, AI-related demand and SMIC's leadership in advanced nodes among China's foundries will support valuation re-rating. The stock is added to the Upside 90-Day Short-Term View list.
Related News: HSBC Research Cuts SMIC (00981.HK) TP to HKD89; More Positive on This Year Outlook
Goldman Sachs | Buy | HKD134 -> 135
High capacity utilization will be maintained in 2Q, with better product mix and higher ASP supporting gross margin.
Nomura | Neutral | HKD75
1Q revenue and gross margin slightly exceeded guidance. Management turned more optimistic for the full year, supported by chip shortages driving price hikes and customer front-loading.
Morgan Stanley | Overweight | HKD70
1Q gross margin beat expectations, with strong 2Q guidance. As a key player in China's domestic AI chip supply chain, high capacity utilization and chip price increases can offset depreciation costs.
Related News: BNP Paribas Rates SMIC (00981.HK) Outperform, Core Engine Driving China AI Ambitions
JP Morgan | Underweight -> Neutral | HKD57 -> 67
1Q gross margin slightly beat expectations due to selective price hikes, with momentum extending into 2Q. However, downside risks from softer end-consumer demand in 2H warrant attention.
Source: AASTOCKS Financial News
http://www.aastocks.com/en/stocks/news/ ... -news/AAFN
Brokers | Ratings | TPs | Core Views
CLSA | Outperform | HKD93.3 -> 94.1/ RMB152 -> 153.4
1Q results were solid, with strong 2Q guidance. Benefiting from AI-driven demand, prices are expected to continue rising alongside margin improvement.
Related News: JPM Upgrades SMIC (00981.HK) to Neutral, Raises TP to HKD67
HSBC Research | Buy | HKD93 -> 89/ RMB153 -> 146
1Q gross margin beat expectations. 2Q revenue outlook has turned more optimistic on rising shipment volume and higher ASP.
BNP Paribas | Outperform | HKD86
1Q results met expectations, with upbeat 2Q guidance. Localization of AI chips will become a stronger driver, and SMIC is seen as a key beneficiary in advanced process nodes.
Citi | Neutral -> Buy | HKD75 -> 90
Domestic substitution, AI-related demand and SMIC's leadership in advanced nodes among China's foundries will support valuation re-rating. The stock is added to the Upside 90-Day Short-Term View list.
Related News: HSBC Research Cuts SMIC (00981.HK) TP to HKD89; More Positive on This Year Outlook
Goldman Sachs | Buy | HKD134 -> 135
High capacity utilization will be maintained in 2Q, with better product mix and higher ASP supporting gross margin.
Nomura | Neutral | HKD75
1Q revenue and gross margin slightly exceeded guidance. Management turned more optimistic for the full year, supported by chip shortages driving price hikes and customer front-loading.
Morgan Stanley | Overweight | HKD70
1Q gross margin beat expectations, with strong 2Q guidance. As a key player in China's domestic AI chip supply chain, high capacity utilization and chip price increases can offset depreciation costs.
Related News: BNP Paribas Rates SMIC (00981.HK) Outperform, Core Engine Driving China AI Ambitions
JP Morgan | Underweight -> Neutral | HKD57 -> 67
1Q gross margin slightly beat expectations due to selective price hikes, with momentum extending into 2Q. However, downside risks from softer end-consumer demand in 2H warrant attention.
Source: AASTOCKS Financial News
http://www.aastocks.com/en/stocks/news/ ... -news/AAFN
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Re: SMIC 0981
by winston » Mon Aug 10, 2026 11:30 am
not vested
<Research> UBS Upgrades SMIC (00981.HK) to Buy, Raises TP to HKD96.2
UBS published a research report turning more positive on SMIC (00981.HK), upgrading its rating from Neutral to Buy and raising its TP from HKD76 to HKD96.2.
The broker believes the market has underestimated the extent to which SMIC will benefit from the localization trend of AI semiconductors in China.
Although UBS lowered its 2026-2028 earnings forecasts by 17% to 19% to reflect share dilution and lower assumptions for non-recurring gains, its forecasts still remain about 20% to 30% above market consensus.
UBS noted that, as China's only wafer foundry with 7-nanometer node technology capability and mass production experience, SMIC stands to benefit the most from structural AI demand and localization of advanced manufacturing processes.
As export controls become manageable and domestic equipment and supply chains mature, the broker expects SMIC's advanced logic production capacity to increase from 26,000 wafers per month by the end of 2025 to 98,000 wafers per month by the end of 2028, and further to 166,000 wafers per month by 2030.
As China's advanced logic supply is expected to remain tight over the next one to two years, capacity utilization is forecast to remain close to full utilization, while average selling prices of advanced-node subsidiaries are also expected to rise moderately.
UBS forecast SMIC's advanced logic revenue to grow from USD1.6 billion in 2025 to USD6 billion in 2028 at a CAGR of 55%.
The broker expected that, supported by rising localization demand, semiconductor upcycle inventory replenishment, healthy capacity utilization, improving average selling prices and increased contribution from advanced manufacturing processes, SMIC's revenue CAGR for 2026-2028 will reach 23%, above the 16% YoY growth expected for 2025.
Regarding gross margin, despite elevated depreciation costs, gross margin is expected to improve from 21% in 2025 to 22%-28% during 2026-2028, benefiting from pricing, utilization and product mix improvements.
UBS raised its 12-month TP from HKD76 to HKD96.2, based on an unchanged target price-to-book ratio of 3.3x, and rolled forward its valuation basis to the average book value per share of USD3.7 for 2027-2028, compared with the previous USD2.9, though partly offset by lower earnings forecasts.
Source: AASTOCKS Financial News
https://www.aastocks.com/en/stocks/news ... -news/AAFN
<Research> UBS Upgrades SMIC (00981.HK) to Buy, Raises TP to HKD96.2
UBS published a research report turning more positive on SMIC (00981.HK), upgrading its rating from Neutral to Buy and raising its TP from HKD76 to HKD96.2.
The broker believes the market has underestimated the extent to which SMIC will benefit from the localization trend of AI semiconductors in China.
Although UBS lowered its 2026-2028 earnings forecasts by 17% to 19% to reflect share dilution and lower assumptions for non-recurring gains, its forecasts still remain about 20% to 30% above market consensus.
UBS noted that, as China's only wafer foundry with 7-nanometer node technology capability and mass production experience, SMIC stands to benefit the most from structural AI demand and localization of advanced manufacturing processes.
As export controls become manageable and domestic equipment and supply chains mature, the broker expects SMIC's advanced logic production capacity to increase from 26,000 wafers per month by the end of 2025 to 98,000 wafers per month by the end of 2028, and further to 166,000 wafers per month by 2030.
As China's advanced logic supply is expected to remain tight over the next one to two years, capacity utilization is forecast to remain close to full utilization, while average selling prices of advanced-node subsidiaries are also expected to rise moderately.
UBS forecast SMIC's advanced logic revenue to grow from USD1.6 billion in 2025 to USD6 billion in 2028 at a CAGR of 55%.
The broker expected that, supported by rising localization demand, semiconductor upcycle inventory replenishment, healthy capacity utilization, improving average selling prices and increased contribution from advanced manufacturing processes, SMIC's revenue CAGR for 2026-2028 will reach 23%, above the 16% YoY growth expected for 2025.
Regarding gross margin, despite elevated depreciation costs, gross margin is expected to improve from 21% in 2025 to 22%-28% during 2026-2028, benefiting from pricing, utilization and product mix improvements.
UBS raised its 12-month TP from HKD76 to HKD96.2, based on an unchanged target price-to-book ratio of 3.3x, and rolled forward its valuation basis to the average book value per share of USD3.7 for 2027-2028, compared with the previous USD2.9, though partly offset by lower earnings forecasts.
Source: AASTOCKS Financial News
https://www.aastocks.com/en/stocks/news ... -news/AAFN
It's all about "how much you made when you were right" & "how little you lost when you were wrong"
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Re: SMIC 0981
by winston » Mon Aug 17, 2026 11:49 am
not vested
<Research> Daiwa Raises SMIC (00981.HK) TP to HKD40, Maintains Sell Rating
Daiwa said in a report that SMIC (00981.HK) 's 2Q results beat expectations, although its 3Q guidance was mixed.
The report noted that SMIC's 2Q net profit reached USD512 million, exceeding market expectations by 104%, mainly benefiting from price hikes, front-loaded consumer orders, and strong demand for AI-related chips.
However, management expects 3Q revenue to grow only 2% to 4% QoQ, below market expectations for 7% to 9% growth, mainly due to a rebalancing effect following the pull-forward of orders in 2Q.
Daiwa said that although the impact of price hikes improved gross margin expectations and the 3Q gross margin guidance of 22% to 24% also beat market expectations, it remains concerned about SMIC's valuation, depreciation pressure and geopolitical risks.
The report mentioned that SMIC is still in a capital expenditure-intensive cycle with heavy depreciation expenses, while technological development is also constrained by geopolitical restrictions.
Whether price hikes can continue to support earnings before depreciation peaks in 1H28 remains uncertain.
Related News - UBS Upgrades SMIC (00981.HK) to Buy, Raises TP to HKD96.2
Daiwa raised its 2026-2028 EPS forecasts for SMIC by 11% to 48% and lifted the TP from HKD36.5 to HKD40, equivalent to an average forecast P/B ratio of 1.1x for 2026-2027, while maintaining a Sell rating.
Daiwa believes the share price has already fully reflected positive factors and that the current valuation is relatively high.
Source: AASTOCKS Financial News
https://www.aastocks.com/en/stocks/news ... -news/AAFN
<Research> Daiwa Raises SMIC (00981.HK) TP to HKD40, Maintains Sell Rating
Daiwa said in a report that SMIC (00981.HK) 's 2Q results beat expectations, although its 3Q guidance was mixed.
The report noted that SMIC's 2Q net profit reached USD512 million, exceeding market expectations by 104%, mainly benefiting from price hikes, front-loaded consumer orders, and strong demand for AI-related chips.
However, management expects 3Q revenue to grow only 2% to 4% QoQ, below market expectations for 7% to 9% growth, mainly due to a rebalancing effect following the pull-forward of orders in 2Q.
Daiwa said that although the impact of price hikes improved gross margin expectations and the 3Q gross margin guidance of 22% to 24% also beat market expectations, it remains concerned about SMIC's valuation, depreciation pressure and geopolitical risks.
The report mentioned that SMIC is still in a capital expenditure-intensive cycle with heavy depreciation expenses, while technological development is also constrained by geopolitical restrictions.
Whether price hikes can continue to support earnings before depreciation peaks in 1H28 remains uncertain.
Related News - UBS Upgrades SMIC (00981.HK) to Buy, Raises TP to HKD96.2
Daiwa raised its 2026-2028 EPS forecasts for SMIC by 11% to 48% and lifted the TP from HKD36.5 to HKD40, equivalent to an average forecast P/B ratio of 1.1x for 2026-2027, while maintaining a Sell rating.
Daiwa believes the share price has already fully reflected positive factors and that the current valuation is relatively high.
Source: AASTOCKS Financial News
https://www.aastocks.com/en/stocks/news ... -news/AAFN
It's all about "how much you made when you were right" & "how little you lost when you were wrong"
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Re: SMIC 0981
by winston » Mon Aug 17, 2026 12:16 pm
not vested
<Research> G Sachs Raises SMIC (00981.HK) TP to HKD153, Expects 3Q26 Capacity Utilization to Remain at High Level
G Sachs issued a report saying that SMIC (00981.HK) 's gross margin for 2Q26 was better than the broker's expectations.
Looking ahead to 2H26, the broker expects the company to be driven by the following factors, including continued capacity expansion; rising demand for AI-related analog/logic chips with higher average selling prices amid the generative AI trend; and growing demand from domestic customers seeking to ensure supply chain security.
The company's capacity increased to 1.097 million wafers per month (in 8-inch equivalent terms) in 2Q26, up from 1.08 million wafers in 1Q26, and management expects capacity to continue expanding.
Looking ahead to 3Q26, the broker expects SMIC's capacity utilization rate to remain at a high level, while average selling prices trend upward driven by strong AI demand and customer expansion. The broker maintained its Buy rating.
Related News: CLSA Raises SMIC (00981.HK) TP to HKD97.5, 3Q Guidance Beats Market Expectations
The broker raised its earnings forecasts for SMIC for 2026-2029 by 19%/15%/13%/13%, respectively.
Gross margin forecasts for 2026-2029 were raised by 2.3 ppts to 2.8 ppts, benefiting from stronger demand-driven pricing and product mix upgrades.
The TP was raised from HKD135 to HKD153.
Source: AASTOCKS Financial News
https://www.aastocks.com/en/stocks/news ... -news/AAFN
<Research> G Sachs Raises SMIC (00981.HK) TP to HKD153, Expects 3Q26 Capacity Utilization to Remain at High Level
G Sachs issued a report saying that SMIC (00981.HK) 's gross margin for 2Q26 was better than the broker's expectations.
Looking ahead to 2H26, the broker expects the company to be driven by the following factors, including continued capacity expansion; rising demand for AI-related analog/logic chips with higher average selling prices amid the generative AI trend; and growing demand from domestic customers seeking to ensure supply chain security.
The company's capacity increased to 1.097 million wafers per month (in 8-inch equivalent terms) in 2Q26, up from 1.08 million wafers in 1Q26, and management expects capacity to continue expanding.
Looking ahead to 3Q26, the broker expects SMIC's capacity utilization rate to remain at a high level, while average selling prices trend upward driven by strong AI demand and customer expansion. The broker maintained its Buy rating.
Related News: CLSA Raises SMIC (00981.HK) TP to HKD97.5, 3Q Guidance Beats Market Expectations
The broker raised its earnings forecasts for SMIC for 2026-2029 by 19%/15%/13%/13%, respectively.
Gross margin forecasts for 2026-2029 were raised by 2.3 ppts to 2.8 ppts, benefiting from stronger demand-driven pricing and product mix upgrades.
The TP was raised from HKD135 to HKD153.
Source: AASTOCKS Financial News
https://www.aastocks.com/en/stocks/news ... -news/AAFN
It's all about "how much you made when you were right" & "how little you lost when you were wrong"
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