[ET Net News Agency, 8 February 2021] CCB International Securities (CCBIS) lifted its
target price for SMIC (00981) to HK$26.5 from HK$25 and maintained its "neutral" rating.
The research house said SMIC's 4Q adjusted net profit was largely in line with consensus
excluding the impact of one-off gains and investment income. The company announced 1Q 2021
revenue guidance for 7-9% QoQ growth, the mid-point of which is 12% above consensus.
CCBIS believes SMIC's mature process capacity is fully loaded in view of strong customer
demand since 4Q 2020. The new capacity will not be ready before 2H 2021 due to the long
approval procedure. It believes 2021 is shaping up to be a tough year for SMIC in terms of
profitability in view of depreciation expense from huge capex in 2020-2021. (KL)