news flash·2025-05-12 02:03Core Viewpoint - Nomura has raised the target price for SMIC by 131% from HKD 18.4 to HKD 42.5 while maintaining a "Neutral" rating, citing strong local demand but pressure on average selling prices [1] Group 1: Financial Performance - SMIC's revenue increased by 2% quarter-on-quarter in Q1, which was below the guidance target due to production interruptions [1] - Management expects the impact of equipment adjustments to continue into Q2, forecasting a revenue decline of 4-6% for that quarter [1] - The average selling price for 12-inch wafers is expected to decrease by 10% compared to the previous quarter, with a further 6% decline anticipated in Q2 [1] Group 2: Market Outlook - Despite the temporary factors affecting pricing, SMIC confirmed that its pricing benchmarks remain unchanged, similar to those of Hua Hong Semiconductor [1] - Both companies have a positive outlook on the pricing dynamics for mature node foundry services [1]