Credit Suisse issued a report that lowered the target price of 0981.HK from HK $20 to HK $18, with a rating of "neutral".
Credit Suisse pointed out that SMIC's first-quarter sales were in line with expectations and its profits also exceeded expectations. The sales guidance for the second quarter ranged from $18.6 to $1.9 billion, below the bank's forecast of $1.98 billion, but in line with market expectations of $1.87 billion. The gross margin guidelines range from 37% to 39%.
Credit Suisse pointed out that SMIC continued to maintain good results, but its share price was affected by the cyclical risk of slowing demand, raising its earnings per share forecast for fiscal year 2022 and 2023 to HK $1.85 and HK $1.75, respectively, and set its earnings per share forecast for fiscal year 2024 at HK $1.90.