Ge Long Hui·2025-11-17 06:45Core Viewpoint - Zhongjin International's report indicates that SMIC's Q3 revenue and gross margin exceeded expectations, but the current memory cycle may impact consumer electronics demand, leading to a more conservative production outlook for next year [1] Group 1: Financial Performance - SMIC's recent financial performance shows a decoupling from its stock price, which is expected to continue [1] - The report highlights a cautious outlook for Q4, which may dampen market enthusiasm for end-demand and domestic substitution demand [1] Group 2: Market Dynamics - The ongoing tariff war and domestic GPU research and development are driving increased demand for advanced processes like 7nm and 5nm [1] - Market dynamics are still favorable for SMIC despite the cautious outlook [1] Group 3: Ratings and Price Target - Zhongjin International maintains a "Buy" rating for SMIC, raising the target price from HKD 56.7 to HKD 83.6 [1] - Nomura also raised its target price for SMIC to HKD 75 while maintaining a "Neutral" rating [2]