[ET Net News Agency, 16 May 2018] Daiwa Research raised its target price for SMIC
(00981) to HK$10.5 from HK$9.5, and retained its "hold" rating.
The research house raised its 2018 net earnings for SMIC to reflect a one-off
licensing-revenue contribution. But, while SMIC's 8" transition appears to be going faster
than the market had expected, Daiwa believes its 28nm recovery is set to remain bumpy and
margin-dilutive.
It lifted its 2Q foundry revenue by 7% to US$844m (+17% QoQ). Including the licensing
revenue of US$56m, total 2Q revenue should reach US$900m, a rise of 8% QoQ. (KL)