Nomura: Raises target price of SMIC International (00981.HK) to 42.5 Hong Kong dollars, maintains "neutral" rating.

Wisdom Financial APP learned that Nomura released a research report stating that the local demand for SMIC (00981.HK) is strong, but the average selling price is currently being affected. The bank maintains a "neutral" rating on the group and raises the target price by 131%, from HK$18.4 to HK$42.5. SMIC will maintain its capital expenditure budget to increase by a steady 7-7.5 billion US dollars year-on-year, and will maintain a target of adding approximately 50kwpm of 12-inch capacity by 2025. The bank expects this to be achieved in the 12-inch wafer fabs in Beijing and Shanghai.