Zhaoyin International: Raises the target price of SMIC (00981.HK) to HKD 119, maintaining a "Buy" rating.

According to the Zhitong Finance APP, CMB International has released a research report maintaining a "Buy" rating for SMIC (00981.HK) and has raised the target price for its H-shares from HKD 110 to HKD 119, corresponding to a projected price-to-book ratio of 5 times for next year. CMB International indicated that SMIC's revenue in the second quarter reached a historic high of USD 3.006 billion, representing a year-on-year increase of 36.1% and a quarter-on-quarter rise of 20%. The gross margin was 25.3%, up 4.9 percentage points year-on-year and increasing by 5.2 percentage points quarter-on-quarter, all exceeding the company's upper guidance and market expectations. The guidance for the third quarter remains positive, with revenue expected to increase by 2% to 4% quarter-on-quarter and a gross margin of 26% to 28%.