OCBC: Semiconductor Manufacturing International Corporation (00981) reported second-quarter results far exceeding expectations and raised its target price to HKD 96.

DBS has released a research report stating that Semiconductor Manufacturing International Corporation (00981) recorded revenue of $3.01 billion in the second quarter, an increase of 36% year-on-year and 20% quarter-on-quarter, exceeding market expectations by 5%. The gross profit margin was 25.3%, significantly above market expectations by about 4 percentage points, benefiting from a rise in average selling prices, increased capacity utilization, and improved product mix. DBS has raised its profit forecasts for SMIC for the years 2026 to 2028, citing growth ranging from 13.4% to 16.5%, and has adjusted the target price from HKD 90 to HKD 96, maintaining a "Buy" rating. Management expects third-quarter revenue to grow by 2% to 4% quarter-on-quarter, with a median year-on-year growth of around 30%, generally in line with market expectations; the gross profit margin guidance is set at 26% to 28%, which is above market expectations by approximately 4.3 percentage points.