[ET Net News Agency, 2 January 2020] Goldman Sachs raised its target price for SMIC
(00981) to HK$14.5 from HK$12.8 and maintained its "buy" rating.
As the major foundry supplier to GigaDevice, SMIC is expected to benefit from
GigaDevice's strong NOR flash shipment growth in 2020-21 driven by TWS (true wireless
stereo), said the research house.
Goldman expects GigaDevice to contribute 7% to SMIC's revenue in 2020 (versus 6% in
2019). It also raised its 2020/21 EPS forecasts for SMIC by 20%/22% on higher gross margin
assumptions due to higher capacity utilization. (KL)