Jingu financial news | Pu Yin International issued a research report stating that Semiconductor Manufacturing International Corporation (00981) is in an upward trend in terms of semiconductor fundamentals. The company's guidance for the third quarter is a median revenue increase of 14% quarter-on-quarter, with a central gross margin of 19%, a significant increase of 5.1 percentage points quarter-on-quarter. This is mainly due to the driving force of domestic demand, the shortage of 12-inch production capacity, product structure optimization, and good prices. The company expects 12-inch production capacity to increase by about 0.06 million pieces by the end of this year, higher than the previous plan.
According to the second-quarter performance and third-quarter guidance of Semiconductor Manufacturing International Corporation, the bank has adjusted its profit forecast for the company. The bank raised its target price for Semiconductor Manufacturing International Corporation's Hong Kong shares to HKD 19.3, a potential increase of 22%, and raised its target price for Semiconductor Manufacturing International Corporation's A-shares to RMB 56.7, a potential increase of 26%. Currently, the price-to-book ratio of Semiconductor Manufacturing International Corporation's Hong Kong shares is 0.8x, and the price-to-book ratio of A-shares is 2.7x. Compared with the historical average, they both have room to rise. The buy rating is reiterated.
