Short Selling Activity Reaches $21B, Representing 12% of Eligible Securities Turnover by Midday

The analyst rating for SMIC (00981.HK) is maintained as "Underweight" by JPMorgan due to a cautious outlook. The reasons for this rating include the need for actual earnings data to support a sustained premium valuation, which is not expected in the next 6-12 months. Additionally, despite strong demand for advanced process products, SMIC's gross profit margin (GPM) remains at a low 20% level, and there is limited potential for significant improvement in GPM in the coming years due to rapidly rising depreciation costs. Although JPMorgan has raised its target price from HKD 36 to HKD 57, the overall sentiment remains cautious.

The analyst rating for SMIC (00981.HK) is maintained at "Buy" by BOCI due to several factors. The company reported 3Q25 results that exceeded revenue and gross profit margin expectations. Despite a cautious outlook for 4Q25 and potential challenges in the consumer electronics market, BOCI believes that favorable market dynamics, such as the ongoing tariff war and the development of domestic GPUs, will continue to drive demand for SMIC's advanced processes (7nm and 5nm). Consequently, BOCI has raised its target price from $56.7 to $83.6, reflecting confidence in SMIC's growth potential despite the current market conditions.

The analyst rating for SMIC was maintained at Neutral by Nomura due to several factors. The firm expects full loadings in 4Q25, benefiting from the continued localization of the supply chain. However, there is caution among customers regarding plans for 2026 due to uncertainty in memory supply, which could impact future demand. Despite this caution, Nomura raised its EPS estimations for 2026 and 2027 by 20% and 29%, respectively, and increased the target price from $51 to $75. The overall outlook remains cautious, leading to the Neutral rating.

The analyst rating for SMIC (00981.HK) was elevated to "Outperform" by CLSA due to several positive factors highlighted in their research report. The key reasons for this rating include: 1. Strong 3Q25 Results: SMIC's revenue grew by 7.8% quarter-over-quarter to $2.38 billion, surpassing the guidance range of 5-7% growth. 2. Improved Gross Margin: The gross margin increased by 1.6 percentage points to 22%, exceeding the guidance of 18-20%. This improvement was attributed to higher capacity utilization, reduced production volatility, and adjustments in the product mix. 3. Positive 4Q25 Outlook: Despite being a traditionally low season, demand is expected to remain strong, with current capacity utilization and wafer production better than the guidance for 4Q25. 4. Increased Earnings Forecasts: CLSA raised its earnings forecasts for 2025-2027 by 5-22% due to higher gross margin expectations. 5. Target Price Increase: The target price for SMIC's H-shares was raised from $58.8 to $93.3, reflecting the positive outlook and performance. These factors collectively contributed to the decision to maintain an "Outperform" rating on SMIC.