Ge Long Hui·2025-09-16 01:08Core Viewpoint - Goldman Sachs has raised the target price and earnings per share (EPS) expectations for SMIC due to revenue growth and improved gross margins [1] Group 1: Target Price Adjustments - Goldman Sachs increased the target price for SMIC's H-shares from HKD 63.7 to HKD 73.1 [1] - The target price for SMIC's A-shares was slightly adjusted from RMB 160 to RMB 160.1 [1] Group 2: Revenue and Profitability Outlook - Analysts, including Allen Chang, noted that the demand from domestic fabless customers is continuously growing, which will drive long-term growth for SMIC [1] - Short-term profit margins for SMIC are expected to gradually recover [1] - Revenue expectations for SMIC for 2028 and 2029 were raised by 0.4% and 2%, respectively [1] Group 3: Industry Trends - The long-term growth momentum for SMIC is anticipated to be stronger due to increased demand from Chinese integrated circuit (IC) design companies and the development trend of artificial intelligence [1]