Zhi Tong Cai Jing·2025-09-29 07:18Core Viewpoint - Goldman Sachs reports that with the release of another round of national subsidies in October, the demand for consumer electronics and smartphones in China remains stable in the second half of the year, showing no significant decline [1] Group 1: Company Analysis - Goldman Sachs maintains an optimistic outlook on Semiconductor Manufacturing International Corporation (SMIC) due to the expansion of long-term orders, benefiting from the market share growth of downstream customers and the increased semiconductor content in electronic devices, particularly with the accelerated deployment of artificial intelligence features [1] - The firm upgrades its valuation basis for SMIC, raising the forecasted price-to-earnings ratio for 2028 from 45.2 times to 51.1 times, and increases the target price for H-shares from HKD 83.5 to HKD 95 [1] - Earnings forecasts for SMIC from 2025 to 2027 remain largely unchanged, while the earnings per share estimates for 2028 and 2029 are each raised by 1%, reflecting an upward adjustment in revenue and gross margin predictions [1] Group 2: Financial Projections - Revenue forecasts for SMIC for 2028 and 2029 are each increased by 0.1%, based on a more optimistic outlook for demand from artificial intelligence consumer electronics [1] - The gross margin forecasts for SMIC for 2028 and 2029 are each raised by 0.1 percentage points, due to expectations of higher capacity utilization leading to better profit margins [1] - Operating expense forecasts remain largely unchanged, while the operating profit predictions for SMIC for 2028 and 2029 are each increased by 1% [1]