JPMorgan Chase & Co published a research report that, thanks to higher product prices, improved portfolio and extended annual maintenance to the second quarter, 0981.HK 's operating performance in the first quarter exceeded expectations and its gross profit margin improved.

The report pointed out that despite the weak demand for consumer technology in China, the company still expects capacity utilization to remain healthy in the second quarter. However, as downstream orders continue to decline, inventory of semi-finished products is excessive and contract supply increases. Motors expects general orders to decline in the second half of this year and next year, leading to a decline in SMIC utilization and maintaining its "neutral" rating.

Motors said SMIC's capacity expansion plan was aggressive, believing that it could lead to a serious oversupply of mature process wafers by 2023, and that SMIC's share price was expected to fluctuate in a range in the future because of lingering concerns about wafer foundry. The target price fell from HK $23 to HK $18.