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Semiconductor Manufacturing International
(0981)
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Rating:48Neutral
Price Target:
HK$49.00
▼(-30.15% Downside)
Action:Reiterated
Date:10/22/26
The score is held back primarily by weak cash-flow quality (persistently negative free cash flow) and bearish technicals (trading well below major moving averages with negative MACD). Improving revenue and margins and manageable leverage provide partial support, but valuation is a major headwind due to the very high P/E and lack of dividend support.
Positive Factors
Revenue and Margin Recovery
TTM revenue grew 8.2% and net margin improved to about 9.9%, showing a meaningful operating rebound. If sustained, better scale and profitability can strengthen internal funding capacity and support SMIC’s ability to compete across its foundry markets over coming quarters.
Negative Factors
Persistent Negative Free Cash Flow
Free cash flow has been persistently negative across all periods shown, including a TTM outflow of about -2.2B. Continued investment intensity reduces near-term internally generated cash, limits shareholder cash yield, and can make expansion more dependent on funding discipline.
Read all positive and negative factors
Positive Factors
Negative Factors
Revenue and Margin Recovery
TTM revenue grew 8.2% and net margin improved to about 9.9%, showing a meaningful operating rebound. If sustained, better scale and profitability can strengthen internal funding capacity and support SMIC’s ability to compete across its foundry markets over coming quarters.
Read all positive factors
Semiconductor Manufacturing International (0981) vs. iShares MSCI Hong Kong ETF (EWH)
Market Cap
HK$549.17B
Dividend YieldN/A
Average Volume (3M)49.07M
Price to Earnings (P/E)115.8
Beta (1Y)1.14
Revenue Growth19.55%
EPS Growth75.30%
CountryHK
Employees19,952
SectorTechnology
Sector Strength88
IndustrySemiconductors
Share Statistics
EPS (TTM)0.13
Shares Outstanding6,014,606,000
10 Day Avg. Volume65,297,958
30 Day Avg. Volume49,065,474
Financial Highlights & Ratios
PEG Ratio2.75
Price to Book (P/B)4.74
Price to Sales (P/S)10.97
P/FCF Ratio-20.64
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
HK$104.48Price Target Upside48.94% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering14
EPS Forecast (FY)0.18
Revenue Forecast (FY)HK$11.94B
Semiconductor Manufacturing International Business Overview & Revenue Model
Company Description
Semiconductor Manufacturing International Corporation operates as an investment holding entity, primarily focused on the computer-aided design, production, evaluation, assembly, and distribution of integrated circuits (ICs). Its market presence ex...
How the Company Makes Money
SMIC primarily makes money by selling foundry manufacturing services, charging customers to produce semiconductor wafers based on the customers’ chip designs. Its core revenue stream is wafer fabrication: customers submit design files and process ...
Semiconductor Manufacturing International Financial Statement Overview
Summary
Income Statement
63
Positive
Balance Sheet
70
Positive
Cash Flow
44
Neutral
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 10.46B | 9.33B | 8.03B | 6.32B | 7.27B | 5.44B |
| Gross Profit | 2.30B | 1.96B | 1.45B | 1.22B | 2.76B | 1.68B |
| EBITDA | 4.74B | 4.45B | 4.21B | 4.06B | 4.61B | 3.82B |
| Net Income | 1.06B | 685.13M | 492.75M | 902.53M | 1.82B | 1.70B |
Balance Sheet | ||||||
| Total Assets | 57.20B | 52.63B | 49.16B | 47.79B | 43.81B | 36.11B |
| Cash, Cash Equivalents and Short-Term Investments | 12.79B | 10.47B | 10.84B | 9.38B | 12.43B | 12.50B |
| Total Debt | 14.02B | 12.70B | 11.60B | 10.21B | 8.69B | 6.77B |
| Total Liabilities | 19.34B | 16.81B | 17.29B | 16.94B | 14.85B | 10.67B |
| Stockholders Equity | 25.15B | 21.58B | 20.61B | 20.12B | 19.15B | 17.15B |
Cash Flow | ||||||
| Free Cash Flow | -2.22B | -4.96B | -4.49B | -4.28B | -912.63M | -1.33B |
| Operating Cash Flow | 5.69B | 3.39B | 3.18B | 3.36B | 5.35B | 3.01B |
| Investing Cash Flow | -5.44B | -4.57B | -4.52B | -6.21B | -10.39B | -6.66B |
| Financing Cash Flow | 2.68B | 539.44M | 1.61B | 2.47B | 3.61B | 2.36B |
Semiconductor Manufacturing International Technical Analysis
Negative
70.15
Price Trends
60.53
Negative
67.07
Negative
67.75
Negative
Market Momentum
-4.80
Positive
22.05
Positive
19.06
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:0981, the sentiment is Negative. The current price of 70.15 is above the 20-day moving average (MA) of 52.56, above the 50-day MA of 60.53, and above the 200-day MA of 67.75, indicating a bearish trend. The MACD of -4.80 indicates Positive momentum. The RSI at 22.05 is Positive, neither overbought nor oversold. The STOCH value of 19.06 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for HK:0981.
Semiconductor Manufacturing International Peers Comparison
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
61 Neutral | $37.18B | 12.37 | -10.20% | 1.83% | 8.50% | -7.62% | |
61 Neutral | HK$1.38B | 6.22 | 8.41% | 5.29% | 6.61% | -46.73% | |
58 Neutral | HK$35.24B | 39.11 | 14.45% | 0.31% | 21.04% | 115.77% | |
56 Neutral | HK$44.04B | 18.82 | 13.06% | 2.00% | 21.38% | 414.20% | |
54 Neutral | HK$155.75B | 133.18 | 1.53% | 0.81% | 24.54% | 276.41% | |
48 Neutral | HK$549.17B | 115.82 | 4.64% | ― | 19.55% | 75.30% | |
41 Neutral | HK$4.73B | -2.56 | -109.17% | ― | ― | ― |
* Technology Sector Average
HK:0981
Semiconductor Manufacturing International
42.98
-29.87
-41.00%
HK:0522
ASMPT Ltd
105.00
23.41
28.70%
HK:1385
Shanghai Fudan Microelectronics Group Co
21.62
-20.56
-48.74%
HK:1347
Hua Hong Semiconductor Ltd.
60.70
-16.25
-21.12%
HK:0085
China Electronics Huada Technology Company Limited
0.68
-0.74
-52.11%
HK:2533
Black Sesame International Holding Limited
6.84
-17.27
-71.64%
Semiconductor Manufacturing International Corporate Events
SMIC Releases Unaudited 2026 Interim Results to Hong Kong Market
Aug 27, 2026
Semiconductor Manufacturing International Corporation announced its unaudited interim results for the six months ended 30 June 2026, fulfilling disclosure requirements for its Hong Kong listing. The interim report, which will be made available on ...
SMIC Board to Consider Approval of 2026 Interim Results Publication
Aug 19, 2026
Semiconductor Manufacturing International Corporation has scheduled a board meeting for 27 August 2026 to consider approving the publication of its unaudited interim results for the six months ended 30 June 2026. The announcement signals that the ...
SMIC Delivers Strong Q2 2026 Growth on AI-Driven Chip Demand
Aug 13, 2026
Semiconductor Manufacturing International Corporation reported second-quarter 2026 revenue of $3.01 billion, up from $2.51 billion in the prior quarter and $2.21 billion a year earlier, reflecting robust demand. Gross profit rose to $760.6 million...
SMIC Sets August Board Meeting to Approve Q2 2026 Results
Jul 30, 2026
Semiconductor Manufacturing International Corporation has scheduled a board meeting for 13 August 2026 to approve the publication of its unaudited financial results for the three months ended 30 June 2026. The timing underscores the company’...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.