CMB: Raise the target price of SMIC (00981.HK) to HKD 36 and maintain a "reduce" rating.

According to the Smart Finance and Economics App, J.P. Morgan released a research report stating that the gross profit margin of SMIC (00981.HK) continues to be under pressure. The stock is maintained as "underweight" with a target price raised from 32 Hong Kong dollars to 36 Hong Kong dollars. As the company continues to expand its wafer capacity of 28 nanometers and below, capital expenditure may remain high in the next 2-3 years, estimated to be between 7 billion to 7.5 billion US dollars. In the short term, the bank believes that the inventory depletion in the fourth quarter of 2025 and increased competition in the CIS market may suppress profit margins and average selling prices.