CITIC SEC: Semiconductor Manufacturing International Corporation (00981) is rated as "buy" with a target price of HK$58.

CITIC SEC released a research report stating that Semiconductor Manufacturing International Corporation (00981, 688981.SH) performed better than expected in the fourth quarter of 2024, with revenue reaching 2.207 billion yuan (US dollars, same below), an increase of 1.7% from the previous quarter; gross profit margin reached 22.6%, up 6.2 percentage points year-on-year. The bank gave Semiconductor Manufacturing International Corporation a "buy" rating, with a target price of HK$58 for H shares and RMB 150 for A shares. The report stated that Semiconductor Manufacturing International Corporation's guidance for the first quarter of 2025 exceeded expectations, with quarterly revenue expected to grow by 6% to 8% from the previous quarter, and gross margin expected to range from 19% to 21%, showing a stable profit capability. The bank pointed out that Semiconductor Manufacturing International Corporation's capital expenditure remains high, with guidance for 2025 similar to the previous year, contrary to market expectations of a downward adjustment; as construction in progress gradually turns into actual production capacity, the release of subsequent capacity is expected to accelerate. In addition, the average selling price of 8-inch equivalent wafers at Semiconductor Manufacturing International Corporation continues to rise, while capacity utilization has dropped to 87%, mainly due to the expansion of 12-inch new capacity.