[ET Net News Agency, 20 November 2017] Credit Suisse lowered its target price for
Semiconductor Manufacturing International Corp (SMIC)(00981) to HK$11.15 from HK$11.3, and
maintained its "buy" rating.
The research house said SMIC's 3Q sales were at the upper half of guidance, driven by
seasonal ramps in communications following a soft 1H. Gross margins were down 280bp QoQ
due to rising depreciation.
SMIC's 4Q sales were guided +1%-3% QoQ, below Credit Suisse's expectation, and GMs were
guided 18-20% on rising deprecation. Credit Suisse lowered its 2017 and 2018 EPS estimates
to HK$0.225 and HK$0.164. (KL)