Futu News, February 18, Today$Semiconductor Manufacturing International Corporation (00981.HK) $After the opening, it fell all the way. As of press time, it fell 6.07% to HK $15.16.

It is reported that yesterday, UBS, Bank of America Merrill Lynch, Morgan Stanley and other big banks have downgraded Semiconductor Manufacturing International Corporation. UBS downgraded Semiconductor Manufacturing International Corporation to "outperform the big market", raising the target price to HK $13, while BofA raised its target price to HK $9, but the rating "outperformed the big market". Big Motors downgraded SMIC to "underweight" and raised the target price to HK $14.50.

In addition, according to a report in the Wall Street Journal on February 17, the Trump administration plans to tighten export controls on Huawei, which may limit the content of parts made in the United States to 10%. The Trump administration is considering changing U.S. regulations, and if the United States passes the new measure, it will have an impact on Huawei and its suppliers, Reuters reported, citing sources.

Prior to this, Semiconductor Manufacturing International Corporation issued 4Q19 operation and 1Q20 guidelines, both better than expected. The company's 4Q revenue increased 4.6% month-on-month, in line with market expectations, and the gross profit margin (23.8%) was better than expected (22.3%), thanks to the continued improvement in capacity utilization (from 97.0% to 98.8%). The 1Q20 revenue guidance maintained month-on-month growth (0 per cent, 2 per cent), thanks to continued full capacity utilisation in mature processes; gross margin guidance declined slightly (from 23.8 per cent to 21 per cent, 23 per cent), but still better than expected (20.7 per cent), as 14nm capacity began to climb.