Lyon: Maintain a outperform rating on SMIC (00981.HK), target price raised significantly to 93.3 Hong Kong dollars.

Wisdom Financial APP learned that Lyon released a research report stating that the fourth quarter guidance of SMIC (00981.HK) roughly meets market expectations. Despite being the traditional off-season, it is believed that demand in the fourth quarter will remain strong. Currently, both capacity utilization and wafer production are better than the fourth quarter guidance. It is predicted that capital expenditures in 2025 will remain flat or slightly increase year-on-year, and profit forecasts for 2025 to 2027 will be raised by 5% to 22% to reflect an expected increase in gross profit margins. The H-share target price has been raised from 58.8 Hong Kong dollars to 93.3 Hong Kong dollars, maintaining an "outperform" rating.