SMIC Plans to Acquire 49% Stake in SMNC for ¥40.6B

Written by Emily J. Thompson, Senior Investment Analyst

Updated: Dec 30 2025

0mins

SMIC intends to acquire the remaining 49% stake in unit SMNC for Y40.6B, or $5.79B, giving the company full control of the subsidiary, Reuters' Ethan Wang and Ryan Woo report, citing a filing with the Shanghai Stock Exchange. The deal for SMNC, which focuses on 12-inch integrated circuit wafer manufacturing, will be executed through issuing 547.2M A-shares to five SMNC shareholders, including China's National Integrated Circuit Industry Investment Fund.

00981

$79.3+Infinity%1D

Analyst Views on 00981

Wall Street analysts forecast 00981 stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for 00981 is USD with a low forecast of USD and a high forecast of USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.

0 Analyst Rating

0 Buy

0 Hold

0 Sell

Current: 76.600

Low

Averages

High

Current: 76.600

Low

Averages

High

BOCOMI

NULL

Buy

maintain

$93

2026-01-06

Reason

BOCOMI

Price Target

$93

AI Analysis

2026-01-06

maintain

NULL

Buy

Reason

The analyst rating for SMIC (00981.HK) was maintained at "Buy" by BOCOMI due to the company's planned acquisition of a 49% stake in Semiconductor Manufacturing North China for RMB40.6 billion. This acquisition is expected to enhance SMIC's profitability, as Semiconductor Manufacturing North China primarily focuses on 12-inch wafer foundry operations. Additionally, BOCOMI raised its target price for SMIC to $93 and increased its diluted EPS forecasts for 2026 and 2027, indicating a positive outlook for the company's financial performance. The broker believes that this equity adjustment will benefit shareholders in both the short and long term.

Huatai Securities

maintain

2026-01-05

Reason

Huatai Securities

Price Target

2026-01-05

maintain

Reason

The analyst rating for SMIC is a "Buy" based on several key factors outlined in the report by Huatai Securities. The planned acquisition of a 49% equity stake in SMNC is expected to significantly enhance the company's financial position, with projections indicating an introduction of around USD4.1 billion in external funds to SMSC, potentially boosting cash reserves by about 101%. Additionally, the equity swap acquisition is anticipated to increase the company's net assets, which could drive a 6.3% growth in net asset value per share to RMB20.1. These positive financial enhancements, along with a maintained target price of HKD100 for SMIC's H-shares and RMB192 for its A-shares, support the analyst's bullish outlook on the stock.

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JPMorgan

Underweight

maintain

$36 -> $57

2025-11-18

Reason

JPMorgan

Price Target

$36 -> $57

2025-11-18

maintain

Underweight

Reason

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.

CLSA

NULL -> Buy

upgrade

2025-11-17

Reason

CLSA

Price Target

2025-11-17

upgrade

NULL -> Buy

Reason

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.

About the author

Emily J. Thompson

Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.