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
It's all about "how much you made when you were right" & "how little you lost when you were wrong"
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winston - Billionaire Boss
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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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winston - Billionaire Boss
- Posts: 114838
- Joined: Wed May 07, 2008 9:28 am
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
It's all about "how much you made when you were right" & "how little you lost when you were wrong"
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winston - Billionaire Boss
- Posts: 114838
- Joined: Wed May 07, 2008 9:28 am
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