- SMIC’s fourth-quarter net income was $107.6 million, marking a 38% decrease compared to the previous year.
- The net income fell short of analysts’ estimates, which were projected at $201.7 million.
- The company’s revenue for the fourth quarter was $2.21 billion, showing a 32% increase year-over-year.
- The gross margin improved to 22.6%, up from 16.4% the previous year, exceeding the estimated 19.1%.
- Capital expenditure for the period totaled $1.66 billion.
- Research and Development expenses reached $217.0 million, higher than the projected $201.3 million.
- SMIC forecasts a first-quarter gross margin of 19% to 21%, higher than the estimated 18.4%.
- Analyst ratings for SMIC include 17 buys, 7 holds, and 5 sells.
Semiconductor Manufacturing International Corp (SMIC) on Smartkarma
Smartkarma, an independent investment research network, has seen several analysts providing coverage on Semiconductor Manufacturing International Corp (SMIC). According to David Mudd‘s report titled “The Heat Is On: News Flow and Sentiment in CHINA / HONG KONG (January 25)“, SMIC is benefitting from AI advances and the localization trend in the semiconductor industry. Analysts project a 23% upside for SMIC shares over the next 12 months. Travis Lundy‘s analysis in “HK Connect SOUTHBOUND Flows (To 17 Jan 2025)” highlights significant buying activity in tech, with SMIC being among the big buys, indicating strong interest in the company.
However, Nicolas Baratte‘s perspective in “Foundries. China (Hua Hong, SMIC) Has Outperformed but on Poor Margins & Inventory Risk” takes a bearish stance, pointing out poor margins and inventory challenges faced by Chinese foundries, including SMIC. On the contrary, Patrick Liao‘s report “SMIC (981.HK): Keeping a Steady Growth” remains bullish, forecasting steady revenue growth and gross margin improvement for SMIC, with a focus on AI and capacity expansion. Overall, the analyst coverage on SMIC reflects a mix of bullish and bearish sentiments, providing investors with diverse viewpoints to consider.
A look at Semiconductor Manufacturing International Corp (SMIC) Smart Scores
| Factor | Score | Magnitude |
|---|---|---|
| Value | 3 | |
| Dividend | 1 | |
| Growth | 3 | |
| Resilience | 3 | |
| Momentum | 5 | |
| OVERALL SMART SCORE | 3.0 |
Smart Score is a compound score for the Company indicating its overall outlook. It is derived by taking an equally weighted average of underlying Factor scores computed by Smartkarma
Based on the Smartkarma Smart Scores, Semiconductor Manufacturing International Corp (SMIC) shows a positive long-term outlook. With a strong momentum score of 5, indicating favorable market trends, SMIC is positioned well for future growth. The company’s value, growth, and resilience scores all fall in the mid-range between 1 and 5, suggesting a stable foundation with room for expansion. However, SMIC’s dividend score is on the lower end at 1, indicating a lower focus on dividend payouts.
As a semiconductor foundry offering a range of integrated circuit services globally, Semiconductor Manufacturing International Corp continues to play a vital role in the industry. With a solid presence in testing, development, design, manufacturing, and packaging of integrated circuits, SMIC is poised to capitalize on the growing demand for semiconductor technologies. The combination of its strengths in value, growth, and resilience, coupled with strong market momentum, positions SMIC for a promising future in the semiconductor sector.
Disclaimer: This article by Smartkarma is general in nature and based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Note that our articles may not factor in the latest price-sensitive company announcements or qualitative material.
While all reasonable care has been taken in the preparation, Smartkarma makes no assurance about the accuracy of any generated data or content. All content is indicative only and should be independently checked for accuracy and confirmed before use. Smartkarma accepts no responsibility for any loss or damage caused as a result of any inaccuracy or error within the Lab online tools or generated data.
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