Sou Hu Cai Jing·2026-02-10 09:57Core Viewpoint - SMIC is set to release its 2025 annual report, with a net profit of 5.0407 billion yuan, reflecting a year-on-year increase of 36.28% [1] Financial Performance - In Q4 2025, the company achieved operating revenue of 17.8128 billion yuan, an increase of 11.9% year-on-year; gross profit was 3.0959 billion yuan, with a gross margin of 17.4% [2] - The unaudited annual revenue for 2025 was 67.3232 billion yuan, up 16.5% from 57.7956 billion yuan in the previous year; net profit attributable to shareholders was 5.0407 billion yuan, a 36.3% increase from 3.6987 billion yuan [2] - The net profit excluding non-recurring gains and losses was 4.1243 billion yuan, a 55.9% increase from 2.6454 billion yuan in the previous year [2] Industry Context - The semiconductor industry is experiencing a shift towards localization, which has had a restructuring effect throughout 2025; the company reported a sales revenue of 9.327 billion USD for the year, a 16.2% increase [3] - The gross margin for 2025 was 21.0%, up by 3.0 percentage points year-on-year; capital expenditure for the year was 8.1 billion USD [3] - The average capacity utilization rate for the year was 93.5%, an increase of 8 percentage points compared to the previous year [3] Future Outlook - For Q1 2026, the company projects stable sales revenue and a gross margin between 18% and 20%; for the full year, it expects revenue growth to exceed the average of comparable peers, with capital expenditure remaining roughly the same as in 2025 [3] - The company anticipates both opportunities from the return of the supply chain and challenges from the memory market cycle [3] Additional Information - The total profit for Q4 2025 decreased compared to the same period last year, primarily due to increased financial expenses and decreased investment income; however, the net profit excluding non-recurring gains and losses increased due to higher wafer sales volume and improved capacity utilization [4] - SMIC specializes in integrated circuit wafer foundry services based on various technology nodes and platforms, along with design services and IP support [4] - In the last 90 days, 13 institutions have rated the stock, with 10 buy ratings and 3 hold ratings; the average target price from institutions is 162.05 [4]