Citi Raises SMIC and HUA HONG GRACE TP and EPS Forecasts; 2Q Results Beat Expectations, Positive Guidance for This Quarter
AASTOCKS News·- Citi raised the target prices and EPS forecasts for SMIC and Hua Hong Grace following better-than-expected 2Q results and positive 3Q guidance. - The 2Q results of SMIC and Hua Hong Grace confirmed a clear recovery in the mature-node and specialty foundry sectors, driven by rising capacity utilization and pricing trends. - SMIC reported 2Q revenue of USD 3 billion with a 25.3% gross margin, while Hua Hong Grace posted record revenue of USD 718 million and a 16.5% gross margin.CMBI Raises SMIC TP to HKD119 as 2Q Results, Current-Quarter Guidance Beat Expectations
AASTOCKS News·- CMBI reported that SMIC achieved a record second-quarter revenue of USD 3.006 billion, with a gross margin of 25.3 %, both exceeding market expectations. - The company projected third-quarter revenue growth of 2 % to 4 % quarter-on-quarter and a gross margin between 26 % and 28 %. - Following these results, the broker raised SMIC's H-share target price to HKD 119 and upgraded its 2026 and 2027 forecasts.JPM Raises SMIC TP to HKD78, 2Q Gross Margin and 3Q Gross Margin Guidance Far Above Expectations
AASTOCKS News·- JPM raised SMIC's target price to HKD 78 while maintaining a Neutral rating, driven by 2Q gross margin reaching 25.3% and 3Q guidance of 26% to 28%. - Strong artificial intelligence demand created tight supply conditions that supported price hikes, which are expected to sustainably bolster revenue and gross margins. - Rising depreciation burdens, projected to grow YoY by about 30% in 2026 and 20% in 2027, may limit further financial upside.HSI Up 405 pts; HSTI Up 94 pts; SMIC Up over 7%; WUXI APPTEC, ABLE DIGITAL, SITC Hit New Highs
AASTOCKS News·- At the midday close, the Hang Seng Index rose 405 pts or 1.6% to 25,521, while the Hang Seng Tech Index increased 94 pts or 2.0% to 4,802. - Major tech heavyweights and index constituents recorded solid gains, including SMIC advancing over 7% and Tencent climbing 1.5%. - Stocks such as WUXI APPTEC, ABLE DIGITAL, and SITC hit new highs during the trading session.A-Share Three Major Indices Gain 0.8%-1.3% at Midday; CXMT Jumps 9% with Mkt Cap Exceeding RMB4T; KWEICHOW MOUTAI Drops Over 4%
AASTOCKS News·- China's three major A-share indices rose 0.8% to 1.3% by midday on 17 Aug 2026, alongside the RMB central parity rate reaching 6.7873. - Chip stocks and major sectors generally advanced, highlighted by CXMT surging 9% with its market capitalization surpassing RMB 4.02 trillion. - KWEICHOW MOUTAI dropped over 4% after reporting a 1.95% YoY decline in 1H26 net profit to RMB 44.517 billion.Daiwa Raises SMIC TP to HKD40, Maintains Sell Rating
AASTOCKS News·- Daiwa reported that SMIC 00981.HK achieved a 2Q net profit of USD512 million, exceeding expectations by 104% due to price hikes and AI demand, despite a weaker 3Q revenue guidance of 2% to 4% QoQ. - The institution raised its 2026-2028 EPS forecasts by 11% to 48% and increased the target price to HKD40, but maintained a Sell rating. - The rating reflects ongoing concerns regarding valuation, high depreciation pressures from capital expenditures, geopolitical restrictions, and uncertain sustainability of price hikes.CLSA Raises SMIC TP to HKD97.5, 3Q Guidance Beats Market Expectations
AASTOCKS News·- CLSA reported that SMIC's 2Q26 revenue and gross margin exceeded guidance, driven by capacity ramp-up and AI chip demand. - The broker raised SMIC's 2026-2028 earnings forecasts by 38% to 69% and lifted the H-share target price to HKD97.5. - SMIC maintains stable wafer prices through 2026 and holds an optimistic demand outlook driven by AI, localization, and returning overseas orders.Weekly Recap: HKEX:981 Q2 revenue jump and AI chip demand +40%
TradingView·- Semiconductor Manufacturing International Corp. reported Q2 revenue of $3.01B with a net profit of $479.2M and guided Q3 revenue up 2–4%. - Co-CEO Zhao Haijun noted that demand for AI-capable chips surged by approximately 40% based on current market trends. - The company faces rising depreciation pressures expected to increase by about 30% in 2026 due to rapid capacity buildout.China’s SMIC, Hua Hong See Triple-Digit Profit Growth in Second Quarter Amid Surging AI Chip Demand
Yicai·- Chinese chip foundries SMIC and Hua Hong reported triple-digit net profit growth in the second quarter. - The surge was primarily driven by soaring artificial intelligence chip demand, rising wafer shipment volumes, and tight supply in mature processes. - SMIC's net profit jumped 262 percent to USD479 million, while Hua Hong's net profit surged 386 percent to USD38.6 million.China’s SMIC plans expansion as AI-related chip demand beats forecasts
SCMP·- Semiconductor Manufacturing International Corporation is planning factory equipment expansions after mature-node chip demand surpassed forecasts due to the artificial intelligence boom. - The company reported a second-quarter capacity utilisation rate of 93.7 per cent and raised prices on supply-constrained products amid surging orders. - Revenue for the quarter ended June 30 reached US$ 3.01 billion, with domestic clients driving the bulk of the business.