Group 1 - The semiconductor leading ETF, 工银 (159665), opened down 1.00% at 1.980 yuan [1] - Major holdings in the ETF include 中芯国际 down 1.89%, 海光信息 down 1.54%, and several others with varying declines, while 拓荆科技 saw a slight increase of 0.02% [1] - The ETF's performance benchmark is the 国证半导体芯片指数, managed by 工银瑞信基金管理有限公司, with a return of 100.14% since its inception on December 22, 2022, and a 1.67% return over the past month [1]

11 February 2026 | 12:10AM HKT Equity Research SMIC (0981.HK): 4Q25 OP beat; UT rate and ASP sustained; 1Q26 Rev guidance in line 4Q25 Revenue of US$2.5bn (+13% YoY/ +4% QoQ) was 3%/ 3% higher than GSe/ Bloomberg consensus, and beyond mgmt. guidance of +0%~+2% QoQ. 4Q25 GM of 19% was in-line with management's guidance (18%~20%) and our / street's expectation of 19.3%/ 20.0%. The revenue growth were driven by wafer shipment increase of +1% QoQ and ASP increase of +1% QoQ, while the gross margin trended down ...

Core Viewpoint - SMIC (Semiconductor Manufacturing International Corporation) is experiencing a significant transformation in its semiconductor supply chain, shifting from foreign to domestic production, which is expected to create ongoing growth opportunities through 2026 [1][6]. Financial Performance - In Q4 2025, SMIC reported revenue of 17.8 billion yuan, an increase of 11.9% year-over-year, with a gross profit of 3.1 billion yuan and a gross margin of 17.4% [2][3]. - The company achieved a net profit of 1.22 billion yuan, up 23.2% year-over-year, while the non-GAAP net profit surged by 112.4% to 947 million yuan [2]. - For the full year 2025, SMIC's revenue reached a record high of 9.327 billion USD, a 16.2% increase from the previous year, with a gross margin of 21.0%, up 3.0 percentage points [4][5]. Market Dynamics - Revenue from Chinese customers grew by 18% year-over-year, while overseas customer revenue increased by 9% [5]. - The revenue distribution by application shows that consumer electronics accounted for 43%, followed by smartphones (23%) and computers/tablets (15%) [5]. - The automotive segment saw a significant increase in revenue, growing over 60% year-over-year, driven by accelerated industry shifts [5]. Capacity and Investment - SMIC's capital expenditure for 2025 was 8.1 billion USD, exceeding initial expectations due to strong customer demand and external environment changes [5]. - The company added 16,000 pieces of 12-inch capacity in Q4 2025, maintaining a capacity utilization rate of 95.7% [2][5]. Future Outlook - For Q1 2026, SMIC expects revenue to remain flat quarter-over-quarter, with gross margins projected between 18% and 20% [6]. - The company anticipates continued growth in 2026 due to the ongoing effects of supply chain reshoring and domestic product replacements [6]. - SMIC plans to expand its production capacity further in 2026, despite potential delays in equipment delivery affecting production capabilities [8]. Industry Trends - The demand for storage solutions driven by AI is impacting the supply chain, with increased orders for high-end applications while mid-range orders are declining [7][9]. - The company is optimistic about a potential recovery in consumer storage demand by Q3 2026, as inventory levels normalize [9].

里昂发表研报指，中芯国际2025年第四季收入按季升4.5%至24.9亿美元，超越0%至2%的增长指引；毛 利率为19.2%，约处于18%至20%指引区间的中值；平均售价按季上升1%至每片晶圆914美元。公司指 引2026年首季收入按季持平，符合市场预期；而毛利率指引为18%至20%，略低于市场预期的20.9%。 公司预期2026年全年收入增长将高于行业平均水平，资本开支指引则大致与2025年的81亿美元持平。里 昂现予中芯国际H股目标价93.3港元，A股目标价152元，均予"跑赢大市"评级。 ...

Core Viewpoint - Semiconductor Manufacturing International Corporation (SMIC) is experiencing price increases in certain product lines due to changes in market supply and demand dynamics, particularly in the context of reduced capacity from competitors like TSMC [1] Group 1: Price Changes and Market Dynamics - SMIC's CEO Zhao Haijun addressed concerns regarding capacity price increases, indicating that prices are influenced by market supply and demand [1] - Reports suggest that SMIC may raise prices by 10% for certain capacities by the end of 2025 due to reduced production capacity from TSMC [1] - The company is witnessing price increases in memory-related products and BCD (Bipolar-CMOS-DMOS) technology due to supply shortages [1] Group 2: Competitive Landscape - Competitors are shifting focus from mature process capacities to advanced packaging, leading to a decrease in the supply of mature process capacities [1] - The demand from AI edge applications is consuming more capacity, contributing to the price stability or slight increases in traditionally lower-priced products like CMOS CIS and LCD Drivers [1]

Core Viewpoint - Goldman Sachs maintains a "Buy" rating for SMIC (00981) with a target price of HKD 134 for H-shares, implying a projected P/E ratio of 71.6 times for 2028, and a target price of RMB 241.6 for A-shares, indicating a premium of 196% over H-share valuation, driven by domestic foundry customer demand growth and AI opportunities [1] Financial Performance - In Q4 of the previous year, SMIC's revenue increased by 4% quarter-on-quarter to USD 2.5 billion, exceeding both Goldman Sachs' and market expectations by 3%, and surpassing management's guidance of 0% to 2% growth [1] - The gross margin for the period was 19%, aligning with management's guidance of 18% to 20%, and generally matching Goldman Sachs' and market expectations [1] - Revenue growth was primarily attributed to a 1% increase in wafer shipments and average selling prices quarter-on-quarter, while the gross margin decreased from 22% in the previous quarter due to increased depreciation and amortization expenses [1] Guidance and Outlook - Management's guidance for Q1 indicates flat revenue quarter-on-quarter, which is in line with Goldman Sachs' expectation of 2% growth and market expectations of flat revenue [1] - The gross margin guidance for Q1 remains at 18% to 20%, slightly below Goldman Sachs' forecast of 21.7% and market expectations of 20.9% [1] - For the full year, management anticipates revenue growth to exceed the average of comparable peers, with capital expenditures expected to remain flat year-on-year; Goldman Sachs believes there is potential for upward revision in guidance [1]

Group 1 - The core viewpoint of the article highlights the performance of the Chip ETF (159995), which opened down by 0.88% at 1.910 yuan on February 11 [1] - Major holdings in the Chip ETF include companies such as SMIC, which fell by 1.89%, Haiguang Information down by 1.54%, and Cambrian down by 1.09% [1] - The ETF's performance benchmark is the National Securities Semiconductor Chip Index return rate, managed by Huaxia Fund Management Co., with a return of 92.76% since its inception on January 20, 2020, and a 1.42% return over the past month [1]

Group 1 - The core viewpoint of the article highlights the performance of the Chip ETF Huatai Fu (516920), which opened down by 0.96% at 1.132 yuan on February 11 [1] - The major holdings of the Chip ETF experienced declines, with notable drops including Cambricon down 1.09%, SMIC down 1.89%, and GigaDevice down 1.69% [1] - The performance benchmark for the Chip ETF is the CSI Chip Industry Index return, with a total return of 14.40% since its establishment on July 27, 2021, and a one-month return of 0.56% [1]

Group 1 - The Hang Seng Index rose by 0.43%, gaining 116 points to close at 27,299 points, while the Hang Seng Tech Index increased by 1.10% [1] - Xiaomi Group-W (01810) saw a rise of over 4%, with the new generation SU7 expected to launch in April [1] - The first-day listing of Xian Dao Intelligent (00470) increased by 0.44%, while fishing company Lexin Outdoor (02720) surged by 33% on its second day of trading [1] - The Kintor Group (00148) and Kintor Laminates (01888) experienced gains of 5% and 14% respectively, driven by expected high growth in copper-clad laminate performance by 2025 [1] - The precious metals sector saw gains, with Wan Guo Gold Group (03939) rising over 9% to reach a new high, benefiting from increased gold prices [1] - Tungsten prices continued to rise, with tungsten oxide increasing by 20,000 yuan per ton and ammonium paratungstate rising by 10,000 yuan per ton, leading to a surge of over 12% for Jiaxin International Resources (03858) [1] - China Duty Free Group (01880) rose over 5% following a strong start to the Spring Festival travel season for duty-free shopping in Hainan [1] Group 2 - Gilead Sciences-B (01672) increased by over 6%, with plans to submit an IND for ASC36 oral tablets for obesity treatment to the FDA in the second quarter [2] - Jinli Permanent Magnet (06680) rose over 7% as rare earth prices continue to climb, with institutions predicting a dual increase in valuation and performance for the sector [3] - Mongol Mining (00975) surged over 11% as its BKH gold mine ramped up production and dividend restrictions were gradually lifted [4] - Semiconductor Manufacturing International Corporation (00981) fell by 3.63% post-earnings, with Goldman Sachs indicating that its first-quarter gross margin guidance was below expectations [5] - Health 160 (02656) plummeted by 33%, retracting most of its gains for the year, with its total market value briefly falling below 20 billion HKD [6]

Market Performance - The Hong Kong stock market showed a strong performance with the Hang Seng Index rising by 0.43% to 27,299.62 points, the Hang Seng Tech Index increasing by 1.1% to 5,510.82 points, and the National Enterprises Index up by 0.41% to 9,280.92 points [1] - Major technology stocks mostly saw gains, with Alibaba up by 0.81%, JD.com up by 0.64%, Xiaomi up by 4.72%, and NetEase up by 1.04%, while Tencent fell by 0.54% [1] Company Earnings - Semiconductor company SMIC reported a significant increase in performance, with projected sales revenue of $9.327 billion for 2025, a year-on-year increase of 16.2%, and a net profit of $685 million, up by 39.1% [2] - SMIC's average capacity utilization rate reached 93.5% for the year, with Q4 utilization hitting 95.7% [2] - PCCW reported a 7% increase in revenue to HKD 40.252 billion, with a 16% reduction in losses [2] Corporate Developments - Minth Group plans to establish a joint venture with Aisin and Toyota to produce aluminum vehicle body frames, strengthening its supply chain in North America [3] - Singlomics completed a placement raising HKD 835 million, with 90% allocated for global Phase III clinical trials of its obesity drug ASC30 [5] - Huatai Securities completed a zero-coupon convertible bond issuance of HKD 10 billion [6] Market Insights - CICC noted that the recent pullback in the Hong Kong market is due to three pressures: hawkish expectations from the Federal Reserve, doubts about AI capital expenditure returns, and lower-than-expected PMI [7] - The market is expected to have limited upward space in the medium term, with a target range for the Hang Seng Index between 28,000 and 29,000 points [7] - Analysts suggest focusing on essential retail and technology hardware sectors for potential growth [7]