Gelonghui, April 18 | Shanxi Securities Research Report indicates that the semiconductor industry cycle of SMIC (688981.SH) is declining in 2023, downstream demand is weak, and the company's wafer sales volume is declining, putting pressure on the company's performance. Benefiting from the release of new consumer electronics products and expectations of macroeconomic recovery, the industry gradually recovered in the second half of 2023. There was a marked month-on-month improvement in Q4, and mobile terminal applications grew strongly. With the adjustment of downstream inventory levels and a gradual recovery in demand, the company's revenue growth in 2024 is expected to be no less than the comparable industry average, achieving single-digit year-on-year growth. As a leading OEM in mainland China, the company has strong resistance to cyclical fluctuations and supply chain localization advantages. As all links in the industrial chain continue to recover, capacity utilization and revenue levels are expected to improve, and for the first time, coverage was given a “buy-A” rating.