Goldman Sachs released a report stating that the replenishment demand for consumer electronics and smart phone components of Semiconductor Manufacturing International Corporation (00981) has continued to support the company's third-quarter shipments and deliveries. However, since customers usually review and adjust orders within the quarter, the situation in the fourth quarter remains uncertain.
Based on Semiconductor Manufacturing International Corporation's performance in the second quarter and its outlook for the third quarter, Goldman Sachs raised the company's annual profit expectations for 2024-2028 by 64%, 5%, 4%, 4% and 2%, respectively. In addition, revenue expectations for 2024 have increased by 5%, and 2025 and 2026 have grown by 2% each, while revenue expectations for 2027 and 2028 have increased by 3%. Gross margin predictions have been raised by 2.3% for 2024, 0.1% for 2025-2027, and remain unchanged for 2028.
The bank has raised its target stock price from HKD 21.4 to HKD 22.4, with a neutral rating.
