Latest Search
Quote
| Back Zoom + Zoom - | ||||
|
<Research>Jefferies Lifts SMIC (00981.HK) TP to $27, Rates Hold
Recommend 15 Positive 30 Negative 25 |
||||
|
||||
|
As SMIC (00981.HK)'s average selling price of products grew on better product mix and higher capacity utilization, its 3Q GM logged a QoQ growth of 6.5 ppts to beat expectations, Jefferies wrote in its research report. Meanwhile, the company's revenue swelled to US$2.17 billion, largely in line with expectations. During the period, SMIC's net profit soared 58% YoY to US$149 million, which was 25% and 17% lower than the market's and the broker's expectations. The broker attributed this to the greater-than-expected impact of non-controlling interests. Although a series of supportive policies introduced by China and the positive sentiment in the market towards further increasing the localization rate of wafer foundry production have driven SMIC's recent stock price rally, the broker reminded investors to pay attention to long-term equity returns as the risk of industry oversupply still exists. The broker kept a Hold rating on SMIC, with a TP for its H-shares raised from $18 to $27. AAStocks Financial News |
||||
Copied to Clipboard
 |
||||
