Market Performance - The Hang Seng Index increased by 0.66% on January 27 [1] - The Hang Seng Tech Index rose by 0.64% [1] Individual Stock Movements - Meitu Inc. saw a significant increase of over 16% [1] - GDS Holdings Limited experienced a rise of over 8% [1] - Tencent Music Entertainment Group rose by over 6% [1] - ZTE Corporation declined by over 8% [1] - Semiconductor Manufacturing International Corporation (SMIC) fell by over 7% [1] - Hua Hong Semiconductor dropped by over 6% [1] - UBTECH Robotics decreased by over 4% [1]

| A股代码：688981 | A股简称：中芯国际 | 公告编号：2025-001 | | --- | --- | --- | | 港股代码：00981 | 港股简称：中芯国际 | | 中芯国际集成电路制造有限公司 关于召开2024年第四季度业绩说明会的预告公告 本公司董事会及全体董事保证本公告内容不存在任何虚假记载、误导性陈 述或者重大遗漏，并对其内容的真实性、准确性和完整性依法承担法律责任。 重要事项提示： 一、 说明会类型 2、电话参与方式： 请提前通过以下链接注册电话会议。 https://register.vevent.com/register/BIb8860a75a7634636b8d789d5bc063b86 中芯国际集成电路制造有限公司（以下简称"公司"）将于2025年2月11日 交易时段后披露公司2024年第四季度业绩，相关内容请详见上海证券交易所网 站（http://www.sse.com.cn/）及香港交易所网站（https://www.hkex.com.hk/）。 为方便广大投资者更全面深入了解公司经营业绩的具体情况，公司拟于 2025年2月12日举行"2024年第四季度业绩说明会"。 ...

董事會會議日期通知 香港交易及結算所有限公司及香港聯合交易所有限公司對本公告的內容概不負責，對其準確性或完整 性亦不發表任何聲明，並明確表示，概不對因本公告全部或任何部份內容而產生或因倚賴該等內容而 引致的任何損失承擔任何責任。 SEMICONDUCTOR MANUFACTURING INTERNATIONAL CORPORATION 中 芯 國 際 集 成 電 路 製 造 有 限 公 司 * （於開曼群島註冊成立之有限公司） （股份代號：00981） 根據香港聯合交易所有限公司證券上市規則第13.43條，中芯國際集成電路製造有限公司（「本 公司」）特此通知，本公司謹訂於2025年2月11日（星期二）舉行董事會會議，旨在批准刊發 本公司截至2024年12月31日止三個月未經審計業績公告。 承董事會命 中芯國際集成電路製造有限公司 執行董事 劉訓峰 非執行董事 魯國慶 陳山枝 楊魯閩 黃登山 公司秘書 / 董事會秘書 郭光莉 中國上海，2025 年 1 月 24 日 於本公告日期，本公司董事分別為： 范仁達 劉明 吳漢明 陳信元 * 僅供識別 獨立非執行董事 ...

Group 1 - Goldman Sachs projects a 1% growth in the semiconductor industry for Q4 2024, reaching $2.2 billion [1] - The report highlights significant growth in semiconductor production and imports in China during October and November, indicating a positive trend in the industry [1] - Goldman Sachs maintains an "Overweight" investment rating for the semiconductor sector, raising the target price to HKD 38 [1]

Investment Rating - The report initiates coverage on SMIC with a "Buy" rating, setting a target price of 133.59 yuan for its A-shares in 2025 [5][44] Core Views - SMIC is positioned as the leading wafer foundry in mainland China, benefiting from the AI-driven semiconductor cycle [1] - The company is expected to capitalize on the AI wave, with demand for advanced and mature process nodes driving growth [2][3] - SMIC's capacity utilization rate bottomed out in 1Q23 and reached 90.4% in 3Q24, indicating improving supply-demand dynamics [2][23] - The company's historical stock performance shows a positive correlation with the semiconductor cycle, suggesting potential upside as the cycle recovers [2][26] Key Drivers AI-Driven Semiconductor Cycle - The global semiconductor cycle is in an upward trend, driven by AI demand, with global semiconductor sales showing 12 consecutive months of YoY growth as of October 2024 [2][20] - AI-driven demand for cloud and terminal chips is expected to be a major factor in the current semiconductor cycle recovery [2][20] Advanced Process Node Demand - AI is driving demand for advanced process nodes, with SMIC well-positioned to benefit due to its leadership in mainland China's advanced process manufacturing [3][30] - SMIC has developed N+1 and N+2 processes, giving it strong pricing power in the domestic market [3][30] - The company is expected to benefit from the localization of AI chip demand and the push for domestic substitution [3][30] Mature Process Node Demand - Mature process nodes are expected to benefit from consumer recovery and accelerated domestic substitution [3] - China's semiconductor capacity increased by 365% from 2012 to 2022, leading globally, driven by strategic expansion and supply chain security concerns [35] - AI-driven innovation is expected to boost demand for traditional products like smartphones and PCs, as well as new categories like AI glasses and headphones [35][38] Financial Projections - Revenue is projected to grow to 56.7 billion yuan in 2024, 65.7 billion yuan in 2025, and 73.5 billion yuan in 2026 [4][44] - Net profit attributable to shareholders is expected to reach 4.02 billion yuan in 2024, 5.96 billion yuan in 2025, and 7.30 billion yuan in 2026 [4][44] - The smartphone segment is expected to be a key growth driver, with revenue growth of 40% in 2024, 25% in 2025, and 15% in 2026 [41][43] Valuation - SMIC is valued using a PB multiple, with a target PB of 7.05x for A-shares in 2025, reflecting its leadership in advanced process nodes in mainland China [44] - The A/H share premium is expected to remain stable at around 3.0x, consistent with historical trends [44][47] Historical Performance - SMIC's stock performance has been sensitive to US-China relations and the semiconductor cycle, with significant volatility during periods of US sanctions [15][16] - The company's capacity utilization has historically shown a strong correlation with its stock price, with periods of high utilization leading to better stock performance [26][27][28]

Investment Rating - Buy (首次) [4] Core Views - SMIC is a leading player in China's semiconductor foundry industry, ranking third globally with a 6% market share in 24Q3 [6] - The company achieved record-high revenue of 15.61 billion RMB in 24Q3, up 14.14% QoQ and 32.50% YoY [6] - SMIC is expected to achieve revenue of 56.4/65.2/73.3 billion RMB in 2024/2025/2026, with YoY growth of 24.7%/15.5%/12.5% respectively [7] Industry Overview - The foundry industry is capital-intensive and highly concentrated, with CR5 exceeding 90% [2] - Global foundry output value is expected to increase by 20% YoY in 2025, driven by AI and supply chain inventory improvements [2] - China's chip self-sufficiency rate was 18.3% in 2022, indicating significant room for domestic substitution [2] Company Operations - SMIC provides foundry services from 0.35μm to 14nm nodes, with total capacity reaching 880k wafers/month (8-inch equivalent) in 24Q3 [6] - The company has multiple 8-inch and 12-inch fabs in Shanghai, Beijing, Tianjin, and Shenzhen [6] - SMIC is the first Chinese company to achieve 14nm FinFET mass production and is leading domestic advanced node development [25] Financial Performance - 24Q3 revenue reached 15.61 billion RMB, with gross margin of 23.92% [74] - 2024-2026 revenue is forecasted at 56.4/65.2/73.3 billion RMB, with net profit of 4.0/5.3/6.8 billion RMB [7] - R&D expenses reached 3.895 billion RMB in 24Q1-Q3, up 7% YoY [51] Technology Development - SMIC has achieved mass production of 14nm FinFET and is developing N+1 process [39] - The company has 17,956 invention patent applications and 11,865 granted patents as of 24H1 [51] - Key R&D projects include 28nm ultra-low leakage platform and 55nm high-voltage display driver platform [79] Market Position - SMIC ranks third globally in foundry with 6% market share in 24Q3 [6] - The company is the top foundry in mainland China, leading domestic advanced node development [25] - SMIC's 12-inch capacity reached 880k wafers/month (8-inch equivalent) in 24Q3 [6] Capacity Expansion - SMIC added 21k 12-inch wafer capacity in 24Q3, bringing total capacity to 884k wafers/month [53] - Capacity utilization rate improved to 90.4% in 24Q3 [53] - The company plans to continue 12-inch fab expansion in 2024 [128] Competitive Landscape - The global foundry market is highly concentrated, with CR5 exceeding 90% [2] - TSMC dominates with 64.9% market share in 24Q3, followed by Samsung (9.3%) and SMIC (6.0%) [97] - China's foundry market grew from 39.1 billion RMB in 2018 to 77.1 billion RMB in 2022, with 18.5% CAGR [102] Future Outlook - AI demand is expected to drive foundry industry growth, with AI server revenue CAGR of 39% from 2022-2027 [62] - SMIC is well-positioned to benefit from domestic substitution and AI-driven demand [7] - The company's valuation is supported by its leading position in China's semiconductor industry [138]

Investment Rating - The report assigns a "Buy" rating to SMIC (688981 SH) for the first time [17] Core Views - SMIC is a leader in China's integrated circuit manufacturing industry and one of the world's leading pure-play foundries, ranking 4th globally and 1st in China by 2023 sales [17] - The company benefits from its platform-based ecosystem model, providing one-stop services including design services, IP support, and photomask manufacturing [17] - Smartization and high-speed computing performance demands are key market drivers, with new smart terminal product upgrades catalyzing replacement cycles [17] - In Q3 2023, SMIC achieved record quarterly revenue of $2 17 billion, up 14% QoQ, with capacity utilization reaching 90 4% and gross margin improving to 20 5% [17] Financial Performance - Revenue is forecasted to grow from 57 477 billion yuan in 2024 to 74 245 billion yuan in 2026, with EPS increasing from 0 49 yuan to 0 81 yuan [17][19] - Net profit attributable to parent company is projected to rise from 3 905 billion yuan in 2024 to 6 437 billion yuan in 2026 [6][17] - Revenue growth rates are estimated at 27% for 2024, 14 1% for 2025, and 13 2% for 2026 [20] - Net profit growth rates are forecasted at -19% for 2024, 34 5% for 2025, and 22 5% for 2026 [21] Market Position - SMIC operates 8-inch and 12-inch wafer foundry services globally [17] - The company added 21k 12-inch wafer monthly capacity in Q3 2023, optimizing product structure and increasing average selling prices [17] - SMIC's current market capitalization stands at 777 7 billion yuan with a share price of 97 51 yuan as of December 27, 2024 [17] Valuation Metrics - The stock trades at 199x, 148x, and 121x projected 2024-2026 earnings respectively [17] - Price-to-sales ratios are estimated at 13 5x for 2024, 11 9x for 2025, and 10 5x for 2026 [23] - Price-to-book ratios are forecasted at 5 3x for 2024, 5 2x for 2025, and 5 0x for 2026 [23] Industry Outlook - The semiconductor industry is experiencing explosive growth driven by smart terminal upgrades and high-performance computing demands [17] - Replacement cycles for smartphones, PCs, wearables, and consumer electronics are showing gradual growth momentum [17]

Key Points Industry or Company Involved - **Industry**: Semiconductor, AI Chips, Advanced Manufacturing - **Company**: Zhong芯国际 (SMIC) Core Views and Arguments - **SMIC's Role in the Semiconductor Industry**: SMIC is the only domestic supplier of advanced process nodes in China, making it a critical bottleneck in the supply chain. - **Demand for Advanced Process Nodes**: The demand for advanced process nodes in China is growing rapidly, driven by the development of AI, 5G, and other high-tech industries. - **Supply Constraints**: The US sanctions have limited the access of Chinese companies to advanced process nodes from foreign suppliers, further increasing the demand for SMIC's services. - **SMIC's Competitive Advantage**: SMIC has been investing heavily in advanced process node development and has made significant progress in this area. - **Valuation**: The report suggests that SMIC's valuation is likely to improve due to its growing market share and improved financial performance. Other Important Points - **US Sanctions**: The US sanctions on SMIC have had a significant impact on the company's operations and have created opportunities for domestic growth. - **Advanced Process Node Development**: SMIC has been investing heavily in advanced process node development and has made significant progress in this area. - **Financial Performance**: The report suggests that SMIC's financial performance is likely to improve due to its growing market share and improved operational efficiency. - **Valuation Method**: The report suggests that SMIC's valuation should be based on a combination of PB and PE methods, taking into account its unique position in the market. References - [doc id='1'] - [doc id='2'] - [doc id='3'] - [doc id='4'] - [doc id='5'] - [doc id='6'] - [doc id='7'] - [doc id='8'] - [doc id='9'] - [doc id='10'] - [doc id='11'] - [doc id='12'] - [doc id='13'] - [doc id='14'] - [doc id='15'] - [doc id='16'] - [doc id='17']

Stock Performance and Trading Activity - SMIC received net purchases from southbound funds for 3 consecutive days, with a cumulative net purchase amount of HKD 2.366 billion, and its stock price rose by 11.47% during this period [1] - On December 24, the total trading volume of active stocks through the Hong Kong Stock Connect (including Shanghai-Hong Kong Stock Connect and Shenzhen-Hong Kong Stock Connect) was HKD 15.969 billion, with a net purchase amount of HKD 2.056 billion [1] - SMIC's trading volume through the Hong Kong Stock Connect channel on December 24 was HKD 1.338 billion, with a net purchase amount of HKD 204 million [1]

Market Activity - SMIC led in net financing purchases with a total of 1.384 billion yuan [1] - Other companies with significant net financing purchases include Accelink, Cambricon, Ingenic, ZTE, Woer, Newsea, AMEC, Runze, Runxin, and Wus, all with net purchases exceeding 300 million yuan [1] - 10 stocks had net financing purchases exceeding 300 million yuan [1] - Last week (December 16 to December 20), 1,659 stocks received net financing purchases, with 68 stocks having net purchases exceeding 100 million yuan [1]