CICC International: Maintains Buy rating for SMIC (00981.HK) with a target price of 90 Hong Kong dollars.

According to the Wise Finance APP, CICC released a research report, raising the capital expenditure forecast for SMIC (00981.HK) in 2025/26/27 to 74.0/76.0/72.0 billion US dollars (previously 68.5/64.9/59.8 billion US dollars). In terms of 12-inch capacity, the bank expects the company to increase monthly capacity by about 11,000 wafers in 3Q25, add 10,000 new wafers in 4Q25, and increase capacity by 40,000/50,000/55,000 wafers in 2025/26/27 respectively. The bank forecasts revenue/gross margin of 24.2 billion US dollars/19.8% in 4Q25, slightly adjusted revenue for 2025/26/27 to 92.6/109.7/122.8 billion US dollars (previously 92.9/110.0/123.1 billion US dollars), and adjusted gross margin to 21.1%/23.0%/23.3% (previously 20.5%/22.1%/24.9%). Maintain a buy rating and a target price of 90 Hong Kong dollars for Hong Kong stocks, corresponding to a 3.9 times price-to-book ratio in 2026.