New Buy Rating for Semiconductor Manufacturing International (0981), the Technology Giant
Tip Ranks·- Semiconductor Manufacturing International received a Buy rating from China Renaissance with a price target of HK$ 142.00. - DBS also issued a Buy rating for the company in a report on August 18. - Meanwhile, J.P. Morgan maintained a Hold rating on the stock on August 16.DBS Raises SMIC TP to HKD96 After 2Q Results Far Exceed Expectations
AASTOCKS News·- DBS reported that SMIC's 2Q revenue reached USD 3.01 billion, up 36% year-on-year, while gross margin significantly beat market expectations at 25.3%. - Management projected 3Q revenue growth of 2% to 4% quarter-on-quarter and guided gross margin to be between 26% and 28%. - Following these results, DBS raised SMIC's earnings forecasts for 2026 to 2028 by 13.4% to 16.5% and lifted its target price to HKD 96.HSI Down 544 pts; HSTI Down 183 pts; BABA Down over 9%; XIAOMI Down over 4%; TENCENT Down over 3%
AASTOCKS News·- At the midday close, the Hang Seng Index dropped 544 points or 2.1% to 25,465, while the Hang Seng Tech Index fell 183 points or 3.8% to 4,582. - Major heavyweights recorded significant declines, with BABA down over 9%, XIAOMI down over 4%, and TENCENT down over 3%. - Other index constituents also faced downward pressure, though selective stocks like PING AN and SINOPEC CORP posted modest gains.A-Share Three Major Indices Fall 0.7% to 3.5% at Midday, YUSHU TECHNOLOGY Slumps Nearly 10%; Mainland Banks and Insurers Stay Firm
AASTOCKS News·- At midday, the three major A-share indices fell between 0.7% and 3.5%, while the PBOC conducted RMB 340 billion of seven-day reverse repos for a net injection of RMB 340 billion. - Mainland bank and insurance stocks stayed firm with gains across major institutions, whereas chip, AI, and optical module stocks generally declined despite strong interim results from some firms. - YUSHU TECHNOLOGY slumped 9.8% to a total market capitalization of RMB 245.283 billion amid the opening of the second World Humanoid Robot Games 2026 in Beijing.HSI Slips 544 pts at Midday as BABA-W Plunges ~10%, SMIC Dives 6%+; AI Large Model Stocks Pressured
AASTOCKS News·- The Hang Seng Index fell 544 pts or 2.09 % to close at 25,465 at midday, driven by widespread declines across major technology and chip stocks. - BABA-W plunged 9.76 % after planning a new share placement to raise HKD80 billion, while AI large model stocks faced heavy pressure following DeepSeek's API price adjustments. - Chip stocks experienced sharp sell-offs, with SMIC plummeting 6.62 % and HUA HONG GRACE tumbling 5.23 %.BOCOM International Raises SMIC TP to HKD108, 2Q Results Far Exceed Expectations
AASTOCKS News·- BOCOM International reported that SMIC's 2Q results surpassed expectations, with revenue reaching USD 3.01 billion and gross margin rising to 25.3 %. - The broker raised SMIC's target price to HKD 108 with a Buy rating, driven by surging artificial intelligence demand and higher average selling prices. - Management projected 3Q revenue growth of 2 % to 4 % QoQ and a gross margin improvement to between 26 % and 28 %.Shanghai Composite Opens Down 2pts; Chinese Banks Soft; YUSHU TECHNOLOGY Slumps Nearly 5%
AASTOCKS News·- The PBOC conducted RMB 340 billion of 7-day reverse repo operations, leading to a net injection of RMB 340 billion as the RMB central parity rate against the USD was set at 6.7841. - The three major A-share indices opened mixed, with the Shanghai Composite Index down 2 pts at 3,902, the Shenzhen Component Index up 23 pts at 14,118, and the ChiNext Index up 4 pts at 3,550. - Chinese bank and insurer stocks generally opened soft, while major tech, chip, and optical module stocks experienced varied trading performances alongside YUSHU TECHNOLOGY slumping nearly 5%.JPM Raises SMIC TP to HKD78, 2Q Gross Margin and 3Q Gross Margin Guidance Far Above Expectations
AASTOCKS News·- JPM raised SMIC's target price to HKD 78 while maintaining a Neutral rating, driven by 2Q gross margin reaching 25.3% and 3Q guidance of 26% to 28%. - Strong artificial intelligence demand created tight supply conditions that supported price hikes, which are expected to sustainably bolster revenue and gross margins. - Rising depreciation burdens, projected to grow YoY by about 30% in 2026 and 20% in 2027, may limit further financial upside.Daiwa Raises SMIC TP to HKD40, Maintains Sell Rating
AASTOCKS News·- Daiwa reported that SMIC 00981.HK achieved a 2Q net profit of USD512 million, exceeding expectations by 104% due to price hikes and AI demand, despite a weaker 3Q revenue guidance of 2% to 4% QoQ. - The institution raised its 2026-2028 EPS forecasts by 11% to 48% and increased the target price to HKD40, but maintained a Sell rating. - The rating reflects ongoing concerns regarding valuation, high depreciation pressures from capital expenditures, geopolitical restrictions, and uncertain sustainability of price hikes.CLSA Raises SMIC TP to HKD97.5, 3Q Guidance Beats Market Expectations
AASTOCKS News·- CLSA reported that SMIC's 2Q26 revenue and gross margin exceeded guidance, driven by capacity ramp-up and AI chip demand. - The broker raised SMIC's 2026-2028 earnings forecasts by 38% to 69% and lifted the H-share target price to HKD97.5. - SMIC maintains stable wafer prices through 2026 and holds an optimistic demand outlook driven by AI, localization, and returning overseas orders.