Ge Long Hui·2026-01-06 02:41Core Viewpoint - The acquisition of 49% stake in SMIC North by SMIC for 40.6 billion yuan is beneficial for shareholders in both the short and long term [1] Group 1: Financial Impact - The acquisition is expected to increase SMIC's net profit attributable to shareholders by over 120 million USD by 2026, positively impacting earnings per share [1] - The deal is anticipated to enhance SMIC's book value per share by a single-digit percentage [1] Group 2: Strategic Developments - SMIC's investment of approximately 7.78 billion USD in SMIC South is seen as a positive move for the development of advanced process technology in China [1] - This capital injection is likely to further strengthen the earnings per share for SMIC shareholders [1] Group 3: Revised Projections - The diluted earnings per share estimates for SMIC have been raised to 0.16 USD and 0.18 USD for 2026 and 2027, respectively [1] - The book value per share estimates have been adjusted to 3.05 USD and 3.27 USD for the same years [1] - The target price for SMIC has been increased to 93 HKD, maintaining a "buy" rating [1]