Goldman Sachs: SMIC Q2 Performance Exceeds Expectations, Target Price for Hong Kong Shares Set at HKD 135

BlockBeats News, August 14 — Goldman Sachs released a report stating that SMIC's second-quarter revenue reached $3 billion, up 36% year-on-year and 20% quarter-on-quarter, surpassing both the bank's and market expectations, as well as exceeding management's guidance of 14% to 16% quarter-on-quarter growth. During the period, the gross margin was 25.3%, higher than the bank's and market expectations of 21% and 21.4%, and also above management's guidance range of 20% to 22%. Goldman Sachs noted that the quarter-on-quarter revenue growth was primarily driven by increased wafer shipments and higher average selling prices. Management attributed the improvement in gross margin to an optimized product mix and higher average selling prices. As for third-quarter guidance, revenue is expected to grow 2% to 4% quarter-on-quarter, in line with the bank's and market expectations. The gross margin guidance of 26% to 28% exceeds the bank's and market expectations. The bank maintains a "Buy" rating for SMIC and holds a positive outlook on the company's long-term growth prospects, believing growth will be driven by increased demand from local fabless semiconductor clients and opportunities related to artificial intelligence. Goldman Sachs has set a target price of HKD 135 for SMIC's Hong Kong-listed shares. (Jin10)