Hey, mooers!
Were you tuned into our "Invest with Sarge" livestream which demystifies the art of trending stocks? If not, no worries — we've got a balanced recap to keep you in the loop and ready to tackle the market trends like a pro!
Insights into Trending Stocks
In our recent session, Sarge explored the dynamics of trending stocks such as $NVIDIA (NVDA.US)$ and $Tesla (TSLA.US)$. These stocks often gain significant attention and can present opportunitie...

$SMIC (00981.HK)$ Are you not clear about the situation? The country allocated 10 billion for the development of ai. Buy it now, what are you waiting for? Go buy nvidia, taiwan semiconductor, tmd. When Trump takes office, it will collapse instantly.

$SMIC (00981.HK)$ China Finance Ministry will be having a briefing on this Saturday,10am.. Huat Arx

$SMIC (00981.HK)$
1. From the perspective of PE, the market cap of SMIC is definitely not cheap. However, for an enterprise in a large-scale catch-up period, with a large amount of equipment depreciation and R&D expenses reducing profits, it is more suitable to use PB/PS for valuation.
2. In the current situation of technological blockade, SMIC is like the Taiwan Semiconductor of the mainland, and for a long time, it is the only one. It is understandable to benchmark SMIC's valuation against TSMC in China's A-share market; and with the dominance of domestic capital in the Hong Kong stock market situation, it is also reasonable for SMIC's valuation to approach that of TSMC.
3. Over the past 10 years, the reasonable range of taiwan semiconductor's valuation is approximately PS 7-13, PB about 4-8 times.
4. The semiconductor industry as a whole will start to rise in 2024. By the middle of 2024, the growth rate of SMIC may be around 25%, with a revenue of approximately 7.5 billion US dollars; In 2025, the growth rate may increase by another 25% to 10 billion US dollars; Considering SMIC's previous production expansion intensity, it could be even higher.
5. Based on the 10 billion US dollars in revenue in 2025, if we follow the reasonable valuation range of taiwan semiconductor at PS 7-13 times, it would be 70-130 billion US dollars. The reasonable valuation of A shares would be in the range of 5000-1 trillion RMB. In a bull market, the basic valuation may surpass 1 trillion RMB, and the Hong Kong stock market cap may reach over 600 billion Hong Kong dollars.
Regarding the impact of geopolitics, the technology blockade and sanctions by the USA have basically taken effect on SMIC, and any tactics that can be used essentially have no practical impact on SMIC; the domestic semiconductor equipment and materials sector has made rapid progress, from 2019 to 2020...

Recently, Chinese assets have demonstrated remarkable growth, emerging as a formidable force in global financial markets.
As investors around the world eye opportunities in China’s booming industries, Malaysian investors have also shown increasing interest in Chinese stocks such as: $Futu Holdings Ltd (FUTU.US)$, $PDD Holdings (PDD.US)$, and $NIO Inc (NIO.US)$.
This raises a critical question: should investors chase this mar...