BOCOM International issued a report stating that SMIC (00981.HK) +0.750 (+0.998%) Short selling $230.22M; Ratio 4.245% 's 2Q results far exceeded expectations, with significant growth in average selling prices. Revenue reached USD3.01 billion, up 20% QoQ, far exceeding the upper end of guidance for 16% QoQ growth. Gross margin was 25.3%, up 5.2 ppts QoQ, also well above the upper end of guidance of 22%. Management guided for 3Q revenue to continue growing 2-4% QoQ, with gross margin improving to between 26%-28%.

The broker said the boost from artificial intelligence has become increasingly evident, while the price increase effect started to emerge in 2Q and may continue into 2H26, which could be the main reason for the company's continuous QoQ improvement in gross margin. Management indicated that shipments related to artificial intelligence computers/tablets as well as industrial/automotive products rose 40% YoY.

The broker raised SMIC's (00981.HK) +0.750 (+0.998%) Short selling $230.22M; Ratio 4.245% TP to HKD108. Considering that the increase in the company's average selling prices has begun to materialize further, it raised its 2026/2027/2028 revenue forecasts to USD11.88 billion/USD14.94 billion/USD17.2 billion. Rating: Buy. The broker believed that since the beginning of the year, SMIC's (00981.HK) +0.750 (+0.998%) Short selling $230.22M; Ratio 4.245% share price performance has significantly Underperformed comparable foundry companies, while direct or indirect demand driven by artificial intelligence has already been fully transmitted to the company's various businesses, with clear benefits to revenue and gross margin. (ha/u)(HK stocks quote is delayed for at least 15 mins.Short Selling Data as at 2026-08-18 12:25.)