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Changes in Hong Kong stocks | SMIC (00981) is now down more than 3%, and the wafer price war continues to push down the company's annual gross margin assumptions
The Zhitong Finance App learned that SMIC (00981) is now down more than 3%. As of press release, it is down 3.23% to HK$16.16, with a turnover of HK$377 million. Morgan Stanley published a report saying that despite a recovery in production capacity utilization, huge capital expenditure and the intensification of the mature wafer price war will continue to suppress SMIC's gross margin performance. SMIC's revenue for the second quarter increased by 5% to 7% quarterly, better than the 1% quarterly increase expected by the market, but the gross margin guidance is still weak between 9% and 11%. The bank lowered its gross margin assumption for the full year to 12.5%, and it is estimated that the trend will continue to be flat
Big Bank Rating | Damo: Lowering SMIC's target price to HK$13.8, the semiconductor industry is expected to recover in the second half of the year
Morgan Stanley published a report lowering the target price of SMIC from HK$16 to HK$13.8, maintaining a “reduced” rating. Although capacity utilization is recovering, huge capital expenditure and the intensification of the mature wafer price war will continue to suppress the company's gross margin performance. SMIC's revenue for the second quarter increased by 5% to 7% quarterly, better than the 1% quarterly increase expected by the market, but the gross margin guidance is still weak. The bank lowered its gross margin assumption for the full year to 12.5%. It is estimated that the flat trend will continue until the second half of next year, mainly due to increased depreciation and pressure on wafer price trends. The report indicates
[Broker Focus] Guoxin Securities maintains SMIC (00981) “buy” rating and is optimistic about the medium- to long-term development prospects of leading domestic foundry companies
According to Guoxin Securities Research, SMIC (00981) released unaudited results: 1Q24 achieved revenue of US$1.75 billion (YoY +19.7%, QoQ +4.3%), better than the guidelines (US$16.78-1.112 billion), and single-quarter revenue surpassed UMC and GF; gross margin was 13.7% (YOY-7.1pct, QoQ-2.7pct), which was significantly better than the guideline (9%-11%), mainly due to an increase in the willingness of global customers to prepare goods. The company anticipates that demand for early delivery from some customers will continue. It is expected that 2Q24 revenue will increase 5%-7% month-on-month, and depreciation will increase quarterly due to increased production capacity. The gross margin is expected to be 9-11%; the company's target sales revenue growth in 2024 can exceed the average of comparable peers.
Jefferies: Maintaining SMIC's (00981) “holding” rating and raising the target price to HK$16.64
Jefferies raised SMIC's (00981) revenue forecast for 2024-26 by 9%, 3%, and 1%, respectively.
SMIC, Hua Hong Boost Capacity Usage in Q1
SMIC's (HKG:0981, SHA:688981) and Hua Hong Semiconductor (HKG:1347, SHA:688347) both reported high capacity utilization in the first quarter, according to separate filings by the semiconductor companies on the Hong Kong Stock Exchange.
Semiconductor Manufacturing International Corp. Target Price Raised to HK$16.64 From HK$16.00 by Jefferies >0981.HK
Semiconductor Manufacturing International Corp. Target Price Raised to HK$16.64 From HK$16.00 by Jefferies >0981.HK
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