[ET Net News Agency, 13 November 2019] Jefferies Research raised its target price for
SMIC (00981) to HK$9.5 from HK$8.1 and maintained its "hold" rating.
The research house said SMIC's 3Q revenue of US$816mn (up 3.2% QoQ) and gross margin of
20.8% (up 1.7pp QoQ) both exceeded market expectation by 2% and 1pp, respectively, thanks
to 97% utilization (versus 91% in 2Q)
Major positives are (1) 8-inch & Mature 12-inch back to full loading thanks to China
fabless (NOR Flash, CIS, IoT, etc.), which confirmed SMIC's competitiveness in mature
tech, and (2) 14nm began mass production.
Mangement's 4Q GPM guidance is well above expectations on high utilization and 14nm
small depreciation. To reflect improving utilization on mature nodes, Jefferies raised its
FY2019/20 net profit forecasts by 24%/21% due to one-off gains and government subsidy.
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00981 SMIC
Nominal 
14.340 +0.100 (+0.702%) Research Report
13/11/2019 14:51
{I-bank focus}Jefferies lifts SMIC (00981) to HK$9.5; "hold"
| Remark: | Real time quote last updated: 23/04/2024 16:51 |
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