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G Sachs: SMIC (00981.HK) 1Q Rev. Guidance in Line; Gross Margin Guidance Below Forecasts
2026-02-11 10:04:01
SMIC (00981.HK)'s 4Q25 revenue rose by 4% QoQ to US$2.5 billion, 3% higher than both the expectations of Goldman Sachs and the market, and surpassing management's guidance of 0-2% growth, Goldman Sachs released a research report saying.

Management guided 1Q26 revenue to remain flat QoQ, largely in line with the forecasts of the broker/ market of 2% growth/ flat performance. 1Q26 gross margin guidance remains at 18-20%, slightly below the predictions of the broker/ market of 21.7%/ 20.9%.

Therefore, Goldman Sachs kept rating at Buy on SMIC, with a target price of $134 for SMIC's H-shares, equivalent to a projected 2028 PE ratio of 71.6x. The broker's target price is RMB241.6 for SMIC's A shares, based on a H-share valuation premium of 196%.

Goldman Sachs held a positive long-term growth outlook for the Company, driven by demand growth from local fabless clients and AI opportunities.
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