HSBC Research: SMIC's first quarter guidance exceeds expectations, but the outlook for the second half of the year is uncertain

Jinshi data news on February 13th, HSBC research published a report pointed out that SMIC (00981.HK) last quarter gross Intrerest Rate was higher than expected, but due to the increase in taxes and minority interests, offset some of the financial asset income, net profit was $108 million, lower than the bank and market expectations of $226 million and $220 million. The report pointed out that SMIC is expected to increase its first-quarter revenue by 6% to 8% on a quarterly basis, higher than the bank and market expectations of a 6% and 2% decline, while the gross Intrerest Rate will be between 19% and 21%, also higher than the bank and market expectations of 18.3%. However, the outlook for the second half of the year is uncertain. HSBC research raised SMIC's earnings per share forecast for the 2025 and 2026 fiscal years by 2% and 5%. At the same time, it believes that the current stock price does not reflect pricing pressure, tariff impact, and weak demand visibility. Maintain a target price of 35 yuan and a hold rating.