<div id="readability-page-1"><div><p>M Stanley published a research report stating that SMIC (00981.HK)<span> </span><span> +2.900 (+4.056%)  </span> <span> Short selling $295.85M; Ratio 4.117%  </span>  recorded 1Q revenue of USD2.51 billion, up 1% QoQ and 11% YoY, in line with the broker and market expectations, mainly driven by an increase in blended average selling prices. Gross margin reached 20.1% during the period, rising 0.9 ppts QoQ and beating the broker and market forecasts. Net profit attributable to shareholders amounted to USD197 million, up 14% QoQ, but fell short of the broker and market expectations due to reduced government subsidies in 1Q.</p><p>The broker noted that SMIC provided strong guidance for 2Q, expecting revenue to grow 14% to 16% QoQ, supported by shipment growth of about 10% and price increases of about 5%. Gross margin guidance for 2Q is 20% to 22%, representing a 0.9 ppts QoQ increase at the midpoint.</p><p>M Stanley believes SMIC is a key participant in supporting Chinas domestic artificial intelligence graphics processing unit (GPU) supply chain. With capacity utilization remaining high and average selling prices rising, the broker believes the company can absorb the additional depreciation from ongoing capacity expansion. It maintained an Overweight rating on SMIC with a TP of HKD70.</p></div></div>

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<p>M Stanley rated SMICas Overweight, citing strong 2Q guidance with expected revenue growth of 14% to 16% QoQ. 1Q revenue was USD2.51 billion, up 1% QoQ and 11% YoY, with a gross margin of 20.1%. Net profit was USD197 million, up 14% QoQ but below expectations due to reduced subsidies. The broker highlights SMIC's role in China's AI GPU supply chain and maintains a target price of HKD70.</p>

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Morgan Stanley

SMIC

MORGAN STANLEY DEP SHS EA REP 1/1000 SHS NON CUM PFD O

MORGAN STANLEY DEP SHS REPSTG 1/1000TH PFD SER Q

MORGAN STANLEY DEP SHS REPS 1/1000 7.125% PFD E

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MORGAN STANLEY 6.5%DEP SHS REPSTG 1/1000 NON CUM SER P

MORGAN STANLEY DEP SHS REPS 1/1000 PFD SER 'A'

MORGAN STANLEY DEP SHS REPR 1/1000TH INT PFD SER 'F' FX

MORGAN STANLEY DEP SHS REP 1/1000 NON-CUM PFD STK SER K

SMIC HK SDR 5to1

M Stanley: SMIC  2Q Guidance Strong, Rated Overweight