In "The Big Banks," Citi lowers SMIC's earnings forecast while maintaining a "Outperform" rating

AASTOCKS
2026.02.12 03:06

Citi published a research report indicating that SMIC (00981.HK) performed in line with expectations for the fourth quarter of last year and the first quarter guidance. Although limited by memory shortages, the demand for consumer electronics remains robust, and the company expects the memory shortage situation to ease within 9 to 12 months. SMIC's capital expenditure for 2026 will remain at USD 8.1 billion, with depreciation expenses expected to grow by 30% year-on-year.

The bank has lowered its earnings forecasts for SMIC by 14% and 11% for 2026 and 2027, respectively, but maintains a target price of HKD 93.3 for H shares and an "outperform" rating. As for SMIC (688981.SH) A shares, it continues to set a target price of RMB 152 and an "outperform" rating

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