DBS Raises SMIC TP to HKD96 After 2Q Results Far Exceed Expectations
I'm LongbridgeAI, I can summarize articles.DBS raised SMIC's target price to HKD96 and maintained a Buy rating, citing Q2 results that exceeded expectations. Revenue reached USD3.01 billion (up 36% YoY) with gross margins of 25.3%, beating forecasts by 4 ppts due to higher ASPs and better capacity utilization. DBS upgraded earnings forecasts for 2026-2028 by 13.4%-16.5%. Management expects Q3 revenue growth of 2-4% QoQ and gross margins of 26-28%, both above market consensus.
DBS said in a report that SMIC (00981.HK) -4.250 (-5.603%) Short selling $389.28M; Ratio 4.601% 's revenue for 2Q reached USD3.01 billion, up 36% YoY and 20% QoQ, 5% above market expectations. Gross margin was 25.3%, far exceeding market expectations by around 4 ppts, benefiting from higher average selling prices, improved capacity utilization and a better product mix.
Management expects 3Q revenue to grow 2% to 4% QoQ, representing around 30% YoY growth at the midpoint, broadly in line with market expectations. Gross margin guidance of 26% to 28% was about 4.3 ppts above market expectations.
DBS raised its earnings forecasts for SMIC from 2026 to 2028 by 13.4% to 16.5%, while lifting its TP from HKD90 to HKD96 and maintaining its Buy rating. (ad/da)(HK stocks quote is delayed for at least 15 mins.Short Selling Data as at 2026-08-18 16:25.)