Lyon: SMIC's first quarter revenue guidance meets market expectations, target price of 93.3 Hong Kong dollars.

Lyon released a research report stating that the target price for SMIC (Semiconductor Manufacturing International Corporation) H shares is 93.3 Hong Kong dollars, and the target price for SMIC A shares is 152 Chinese yuan, with both given an "outperform" rating. SMIC's revenue for the fourth quarter of 2025 increased by 4.5% to 2.49 billion US dollars, surpassing the growth guidance of 0% to 2%. The gross profit margin for the period was 19.2%, approximately in the middle of the guidance range of 18% to 20%. The average selling price increased by 1% to $914 per wafer. The company guided that the revenue for the first quarter of 2026 will remain stable, in line with market expectations, while the gross profit margin is expected to be between 18% and 20%, slightly lower than the market's expectation of 20.9%. The company expects revenue growth for the full year of 2026 to exceed the industry average, with capital expenditures expected to be roughly in line with the 81 billion US dollars in 2025.