Daiwa reported that Semiconductor Manufacturing International Corporation's performance in the first quarter of this year was solid and management's guidance for the full year was in line with expectations, but macro pressure may add to market concerns, including a possible adjustment in the inventory maturity period in the second half of this year, high depreciation charges weakening gross profit margin and continued inclusion in the US entity list. The bank lowered SMIC's target price to HK $17.3 from HK $21.5, maintaining its rating of "hold".