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<Research> CLSA Raises SMIC (00981.HK) TP to HKD94.1 on AI Demand Boosting Order Momentum
Recommend 23 Positive 32 Negative 4 |
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CLSA published a research report stating that SMIC (00981.HK) (688981.SH) delivered 1Q results and 2Q guidance both above expectations. Management expects full-year 2026 order momentum to remain strong, driven by AI demand, order repatriation to domestic foundries, emerging AI applications, import substitution and advance inventory build-up. SMIC anticipates gross margin to improve steadily, with the price hike trend continuing through 2026. Management expects the impact of price increases to gradually emerge in 2Q and become more evident in 3Q to 4Q. However, depreciation expenses are projected to rise by more than 30% in 2026. CLSA raised its 20262028 EPS forecasts for SMIC by 15%/15%/11% to reflect higher pricing, robust order growth and stronger gross margin assumptions. The broker maintained its Outperform rating on SMIC H-shares, lifting the TP from HKD93.3 to HKD94.1. It also maintained an Outperform rating on its A-shares, raising the TP from RMB152 to RMB153.4. CLSA believes SMIC will benefit from AI-driven demand and the localization trend. (ad/u) Auto-translated by AI This article was automatically translated by AI, the original language version should be considered the authoritative version. AASTOCKS.com Limited does not guarantee its accuracy or completeness and accepts no liability for any damages or losses arising from the use of this translation. More Details
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