Zhi Tong Cai Jing·2025-09-16 08:01Core Viewpoint - Goldman Sachs has issued a report indicating a rising demand for fabless semiconductor companies in China, which benefits foundry SMIC (00981) through increased utilization and gross margin recovery [1] Group 1: Company Outlook - Goldman Sachs is optimistic about SMIC due to stable capacity expansion and new AI opportunities, raising the target price from HKD 63.7 to HKD 73.1, reflecting a projected P/E ratio of 40 times for FY2028, up from 36 times [1] - The company is expected to see a short-term revenue growth of 5% to 7% quarter-on-quarter in Q3 this year, with gross margins anticipated to be between 18% and 20% [1] Group 2: Market Trends - The rise of artificial intelligence is driving demand for AI computing chips, which is expected to enhance SMIC's long-term growth prospects [1] - Overall, SMIC's revenue is projected to have a compound annual growth rate (CAGR) of 21% from 2025 to 2029, with gross margins expected to recover from 21% this year to 28% by 2029 [1] Group 3: Financial Projections - Due to strong growth in AI and fabless semiconductor companies, revenue forecasts for SMIC for 2028 and 2029 have been increased by 0.4% and 2% respectively, while gross margin forecasts have been raised by 0.4 and 0.6 percentage points [1] - Consequently, earnings per share estimates for the same period have been adjusted upwards by 3% and 7% [1]