According to the report released by Daiwa, due to the demand and pricing power previously constructed and geopolitical factors, SMIC's Q2 revenue increased by 9% QoQ. Daiwa maintained its "hold" rating and raised the target price from HKD 16 to HKD 17.

SMIC's Q2 performance and Q3 guidance significantly exceeded market expectations, with Q2 revenue increasing by 9% QoQ, exceeding the company's guidance target of 5-7%. At the same time, EPS forecast for the next two years has been raised by 39-434% due to low base in Q1 and maintaining a "hold" rating due to concerns about depreciation burden and uncertain geopolitical situations.