UBS: Upgrades SEMI (00981.HK) rating to "Buy," target price raised to HKD 96.2.

According to news from Zhitong Finance APP, UBS has released a research report stating that its outlook on SMIC (00981.HK) has become more positive, upgrading its rating from "Neutral" to "Buy," and raising the target price from HKD 76 to HKD 96.2, based on an unchanged target price-to-book ratio of 3.3 times. The valuation basis has been rolled over to an average net book value per share of USD 3.7 for 2027 to 2028, which is higher than the previous estimate of USD 2.9, although part of this increase is offset by downward adjustments in profit forecasts. The bank believes the market underestimates SMIC's benefits from the localization trend of artificial intelligence semiconductors in China, despite reducing profit forecasts for 2026 to 2028 by 17% to 19% to reflect equity dilution and adjusted assumptions for non-recurring gains; nonetheless, its forecasts remain approximately 20% to 30% above market consensus.