$SMIC (00981.HK)$ In the early trading session, it surged over 5%, reaching HKD 30.75, with a transaction amount of HKD 1.655 billion.

Goldman Sachs released a Research Report pointing out that the company remains Bullish on Semiconductor Manufacturing International Corporation as a leading foundry in China due to the growing demand from customers for local production. However, ongoing capacity expansion, increased supply of mature node capacity, intensified competition, and geopolitical risks continue to be concerns and uncertainties regarding valuations. It is anticipated that in the second half of this year, the end demand in the industrial and Autos sectors may weaken amid fierce competition, but it should gradually recover with the completion of inventory digestion. With healthier inventory levels and the push for localization trends, the outlook for Semiconductor Manufacturing International Corporation's revenue is optimistic.

The firm continues to indicate that while there is an optimistic outlook on the sales growth of Semiconductor Manufacturing International Corporation, the average selling price growth may remain moderate due to the increased supply at mature nodes in China. Overall, the firm expects the gross margin of Semiconductor Manufacturing International Corporation to gradually recover, raising the target price for its H shares from HK$29.2 to HK$33.4, maintaining a 'Neutral' rating.

Editor/rice