HK Stock Market Move | Semiconductor Manufacturing International Corporation (00981) fell nearly 4% after earnings, with Goldman Sachs indicating that its first quarter gross profit margin guidance is lower than expected.

Semiconductor Manufacturing International Corporation (00981) fell nearly 4%, and at the time of writing, it had fallen by 3.77% to HKD 68.85, with a turnover of HKD 29.43 billion. On the news front, Semiconductor Manufacturing International Corporation announced that its sales revenue for the fourth quarter of 2025 was $24.89 billion, a year-on-year increase of 12.8% and a quarter-on-quarter increase of 4.5%; the company's attributable profit was $173 million, a year-on-year increase of 60.7% and a quarter-on-quarter decrease of 9.9%. Looking ahead to 2026, the company's guidance for the first quarter is: sales revenue is expected to remain flat, with a gross margin between 18% and 20%. Assuming no major changes in the external environment, the company's guidance for 2026 is: sales revenue growth exceeding the average of comparable peers, and capital expenditure roughly in line with 2025. A Goldman Sachs research report pointed out that the company's management guidance for first-quarter revenue to remain flat on a quarterly basis is largely in line with the bank's expectation of 2% growth and market expectations. The first-quarter gross margin guidance remains at 18% to 20%, slightly below the bank's expectation of 21.7% and the market's expectation of 20.9%. For the full year, the management of SMIC expects revenue growth to exceed the average level of comparable peers, with capital expenditure remaining flat year-on-year; the bank believes there is room for upward guidance.