CICC maintains an Outperform rating for SMIC due to its first-quarter results and second-quarter guidance meeting expectations. The company reported a revenue increase of 11% year-over-year and a gross margin of 20.1%. For the second quarter, SMIC expects revenue growth of 14-16% quarter-over-quarter, supported by higher utilization rates and rising average selling prices. The report highlights the company's strong position in the market, benefiting from localized production demand and a shift in customer mix towards non-traditional consumer electronics segments.
