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JPMorgan

Underweight

maintain

$36 -> $57

2025-11-18

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.

JPMorgan

Underweight

Price Target

$36 -> $57

2025-11-18

maintain

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

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.

CLSA

NULL -> Buy

Price Target

2025-11-17

upgrade

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.

Nomura

Neutral

maintain

$51 -> $75

2025-11-17

Reason

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.

Nomura

Neutral

Price Target

$51 -> $75

2025-11-17

maintain

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.

CLSA

upgrade

2025-11-17

Reason

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.

CLSA

Price Target

2025-11-17

upgrade

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.

Goldman Sachs

maintain

$117 -> $211

2025-11-14

Reason

The analyst rating from Goldman Sachs for SMIC (00981.HK) is maintained at "Buy" due to the company's 3Q25 revenue performance, which amounted to US$2.4 billion, exceeding both market expectations and management's guidance. Despite a slightly lower gross profit margin guidance, the broker believes that actual performance has the potential to beat expectations, justifying the positive rating and target prices of $117 for H-shares and RMB211 for A-shares.

Goldman Sachs

Price Target

$117 -> $211

2025-11-14

maintain

The analyst rating from Goldman Sachs for SMIC (00981.HK) is maintained at "Buy" due to the company's 3Q25 revenue performance, which amounted to US$2.4 billion, exceeding both market expectations and management's guidance. Despite a slightly lower gross profit margin guidance, the broker believes that actual performance has the potential to beat expectations, justifying the positive rating and target prices of $117 for H-shares and RMB211 for A-shares.

Huatai Securities

Buy

maintain

2025-10-10

Reason

Huatai Securities raised its target prices for SMIC's H-shares and A-shares while maintaining a Buy rating due to several key factors. The firm predicts significant year-over-year net profit increases for SMIC from 2025 to 2027, driven by the anticipated rapid growth in domestic demand for advanced process foundry services, particularly due to the release of Chinese-made AI chips led by Huawei. Additionally, the tightening of US export controls on equipment to China is expected to compel domestic foundry companies like SMIC to capture a larger market share. The report also advises investors to monitor future trends in SMIC's product pricing and changes in minority interests.

Huatai Securities

Buy

Price Target

2025-10-10

maintain

Huatai Securities raised its target prices for SMIC's H-shares and A-shares while maintaining a Buy rating due to several key factors. The firm predicts significant year-over-year net profit increases for SMIC from 2025 to 2027, driven by the anticipated rapid growth in domestic demand for advanced process foundry services, particularly due to the release of Chinese-made AI chips led by Huawei. Additionally, the tightening of US export controls on equipment to China is expected to compel domestic foundry companies like SMIC to capture a larger market share. The report also advises investors to monitor future trends in SMIC's product pricing and changes in minority interests.

Goldman Sachs

Buy

to

Buy

upgrade

$95

2025-10-06

Reason

The analyst rating from Goldman Sachs for HUA HONG SEMI and SMIC is based on a positive outlook regarding the continuous development of China's domestic AI ecosystem. This development is expected to create long-term business opportunities in the semiconductor sector for both companies. Goldman Sachs anticipates that as leading Chinese foundries, HUA HONG SEMI and SMIC will benefit from the growth in AI-related demand, particularly for products such as PMICs for data centers and various components for AI devices. Consequently, the firm raised its target prices for both stocks and maintained a "Buy" rating.

Goldman Sachs

Buy

to

Buy

Price Target

$95

2025-10-06

upgrade

The analyst rating from Goldman Sachs for HUA HONG SEMI and SMIC is based on a positive outlook regarding the continuous development of China's domestic AI ecosystem. This development is expected to create long-term business opportunities in the semiconductor sector for both companies. Goldman Sachs anticipates that as leading Chinese foundries, HUA HONG SEMI and SMIC will benefit from the growth in AI-related demand, particularly for products such as PMICs for data centers and various components for AI devices. Consequently, the firm raised its target prices for both stocks and maintained a "Buy" rating.

BOCOM International

Neutral

maintain

$45 -> $47

2025-08-12

Reason

The analyst rating from BOCOM International for SMIC (00981.HK) is maintained at Neutral due to the current valuation level of the company adequately reflecting its fundamentals. Despite the stronger-than-expected 2Q25 results, which included a revenue decline of 1.7% QoQ and a gross margin of 20.4%, the overall assessment suggests that the company's valuation aligns with its performance. The slight adjustment of the H-share target price from HKD45 to HKD47 indicates a cautious outlook, reflecting the anticipated revenue growth of 5-7% QoQ for 3Q25 and a gross margin guidance of 18-20%.

BOCOM International

Neutral

Price Target

$45 -> $47

2025-08-12

maintain

The analyst rating from BOCOM International for SMIC (00981.HK) is maintained at Neutral due to the current valuation level of the company adequately reflecting its fundamentals. Despite the stronger-than-expected 2Q25 results, which included a revenue decline of 1.7% QoQ and a gross margin of 20.4%, the overall assessment suggests that the company's valuation aligns with its performance. The slight adjustment of the H-share target price from HKD45 to HKD47 indicates a cautious outlook, reflecting the anticipated revenue growth of 5-7% QoQ for 3Q25 and a gross margin guidance of 18-20%.

JP Morgan

Underweight

maintain

$36

2025-08-12

Reason

JP Morgan maintained its Underweight rating for SMIC due to several factors: the company's anticipated slowdown in growth for 4Q25 attributed to inventory destocking, ongoing pressure on gross margins from increased depreciation costs, and a lack of improvement in average selling prices (ASP) despite a higher mix of high-end wafers resulting from lower yields. Additionally, the firm noted that SMIC's capital expenditures are expected to remain high over the next 2-3 years as the company continues to expand its production capacity for 28nm and below wafers.

JP Morgan

Underweight

Price Target

$36

2025-08-12

maintain

JP Morgan maintained its Underweight rating for SMIC due to several factors: the company's anticipated slowdown in growth for 4Q25 attributed to inventory destocking, ongoing pressure on gross margins from increased depreciation costs, and a lack of improvement in average selling prices (ASP) despite a higher mix of high-end wafers resulting from lower yields. Additionally, the firm noted that SMIC's capital expenditures are expected to remain high over the next 2-3 years as the company continues to expand its production capacity for 28nm and below wafers.

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