Semiconductor Manufacturing International (0981) AI Stock Analysis

• Market Cap: HK$629.53B
• Dividend Yield: N/A
• Average Volume (3M): 94.43M
• Price to Earnings (P/E): 105.0
• Beta (1Y): 1.53
• Revenue Growth: 20.61%
• EPS Growth: 18.43%
• Country: HK
• Employees: 19,186
• Sector: Technology
• Sector Strength: 88
• Industry: Semiconductors
• EPS (TTM): 0.16
• Shares Outstanding: 6,001,816,000
• 10 Day Avg. Volume: 81,816,157
• 30 Day Avg. Volume: 94,434,044
• PEG Ratio: -1.50
• Price to Book (P/B): 1.63
• Price to Sales (P/S): 4.19
• P/FCF Ratio: -7.49
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: HK$88.35
• Price Target Upside: 37.62% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 6
• EPS Forecast (FY): 0.13
• Revenue Forecast (FY): HK$11.17B

• Rating: 58 Neutral
• Price Target: HK$75.00 ▲(16.82% Upside)
• Action: Reiterated Date: 12/19/25
• Date: Action: Reiterated 12/19/25

The overall score is primarily influenced by strong financial performance in terms of revenue growth and gross margins. However, high P/E ratio and negative free cash flow present significant risks. Technical indicators suggest bearish momentum, further impacting the stock's attractiveness.

Positive Factors

Very strong revenue growth (TTM)

Sustained near-term revenue acceleration reflects strong demand and expanding wafer volumes across customer programs. Durable top-line expansion improves scale economics, supports continued capacity investment and gives leverage to negotiate long-term customer commitments.

Improving gross margins

Material margin improvement indicates better yield, process efficiency and product mix. Higher gross margins are structural if driven by technology maturation and yield gains, supporting reinvestment for node upgrades and stabilizing long-term profitability.

Foundry business model & market reach

As a dedicated foundry with multi-node capabilities and specialty processes, SMIC benefits from recurring wafer revenue, sticky customer relationships and diversified end-market exposure (consumer, communications, industrial, automotive), which underpin steady demand over time.

Negative Factors

Negative free cash flow

Negative FCF in a capital-intensive foundry limits ability to fund equipment upgrades and capacity expansion internally. Persistent negative FCF increases reliance on external financing, which can constrain strategic investments and raises long-term liquidity risk.

Low net profit margin

A single-digit net margin reduces retained earnings available for R&D and capex in a technology-driven industry. Low net profitability makes returns sensitive to cost inflation or pricing pressure, weakening long-term resilience against competitive or cyclical shocks.

Modest return on equity

ROE near 3.7% shows limited efficiency in converting equity into profits for a fast-growing firm. In a capital-heavy sector this implies slow payback on investments and potential dilution risk if additional capital is needed to scale advanced process capabilities.

Semiconductor Manufacturing International Business Overview & Revenue Model

Company Description

Semiconductor Manufacturing International Corporation, an investment holding company, engages in the computer-aided design, manufacture, testing, packaging, and trading of integrated circuits (IC) in North America, China, rest of Asia, Hong Kong, and Eurasia. It is also involved in the technical research and development, manufacture, and sale of semiconductor masks; provision of semiconductor foundry and technology services; and construction, operation, and management of living quarters. In addition, the company offers one-stop supporting services in design, IP support, photomask manufacturing, etc.; marketing related services; and private education services. Semiconductor Manufacturing International Corporation was incorporated in 2000 and is headquartered in Shanghai, the People's Republic of China.

How the Company Makes Money

SMIC generates revenue primarily through its semiconductor manufacturing services, which include wafer fabrication and design services for various integrated circuits. The company operates on a foundry model, where it manufactures chips designed by other companies, charging clients based on the size and complexity of the chips produced. Key revenue streams include contracts with major clients in the electronics and telecommunications sectors, as well as partnerships with leading technology firms. Additionally, SMIC benefits from economies of scale and investments in advanced manufacturing technology, which help enhance production efficiency and reduce costs. The company's growth is also supported by increasing demand for semiconductors in emerging markets, particularly as the global shift towards 5G technology and the Internet of Things (IoT) accelerates.

Semiconductor Manufacturing International Financial Statement Overview

Summary

Strong revenue growth and improved gross margins indicate effective operational strategies. However, low net profit margin and negative free cash flow highlight profitability and liquidity challenges.

Income Statement

The company shows a strong revenue growth rate of 187.69% in the TTM period, indicating robust expansion. Gross profit margin improved to 24.47% from 18.03% in the previous year, reflecting better cost management. However, net profit margin is relatively low at 8.16%, suggesting room for improvement in profitability.

Balance Sheet

The debt-to-equity ratio is stable at 0.54, indicating moderate leverage. Return on equity is modest at 3.65%, suggesting limited efficiency in generating returns from equity. The equity ratio stands at 43.04%, showing a solid equity base relative to total assets.

Cash Flow

Operating cash flow is positive, but free cash flow is negative, indicating potential liquidity challenges. The free cash flow to net income ratio is -1.39, highlighting inefficiencies in converting income to free cash flow. Despite a significant growth in free cash flow, the negative value remains a concern.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	9.07B	8.03B	6.32B	7.27B	5.44B	3.91B
Gross Profit	2.07B	1.45B	1.22B	2.76B	1.68B	920.91M
EBITDA	3.91B	4.21B	4.06B	4.61B	3.82B	2.12B
Net Income	641.18M	492.75M	902.53M	1.82B	1.70B	715.55M
Balance Sheet
Total Assets	49.36B	49.16B	47.79B	43.81B	36.11B	31.32B
Cash, Cash Equivalents and Short-Term Investments	4.07B	10.84B	9.38B	12.43B	12.50B	12.74B
Total Debt	11.51B	11.60B	10.21B	8.69B	6.77B	6.37B
Total Liabilities	16.33B	17.29B	16.94B	14.85B	10.67B	9.64B
Stockholders Equity	21.24B	20.61B	20.12B	19.15B	17.15B	15.17B
Cash Flow
Free Cash Flow	-4.09B	-4.49B	-4.28B	-912.63M	-1.33B	-3.65B
Operating Cash Flow	3.37B	3.18B	3.36B	5.35B	3.01B	1.66B
Investing Cash Flow	-5.19B	-4.52B	-6.21B	-10.39B	-6.66B	-7.07B
Financing Cash Flow	1.68B	1.61B	2.47B	3.61B	2.36B	12.70B

Semiconductor Manufacturing International Technical Analysis

• Last Price: 64.20

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:0981, the sentiment is undefined. The current price of 64.2 is equal to the 20-day moving average (MA) of ―, equal to the 50-day MA of ―, and equal to the 200-day MA of ―, indicating a neutral trend. The MACD of ― indicates undefined momentum. The RSI at ― is undefined, neither overbought nor oversold. The STOCH value of ― is undefined, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a undefined sentiment for HK:0981.

Semiconductor Manufacturing International Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
1385	66 Neutral	HK$59.38B	149.23	7.85%	0.20%	12.62%	-4.75%
0085	64 Neutral	HK$2.54B	10.18	14.23%	6.98%	-18.35%	-6.00%
0522	62 Neutral	HK$46.76B	35.76	1.55%	0.69%	-0.64%	-39.74%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
0981	58 Neutral	HK$629.53B	105.03	4.79%	―	20.61%	18.43%
1347	54 Neutral	HK$175.54B	179.01	0.16%	0.23%	19.15%	-94.32%
2533	45 Neutral	HK$13.28B	-6.41	―	―	―	―

Semiconductor Manufacturing International Corporate Events

SMIC Calls February 2026 EGM to Approve Share-Financed Asset Purchase

Semiconductor Manufacturing International Corporation has called an extraordinary general meeting in Shanghai on 12 February 2026 to seek shareholder approval for a proposed asset purchase to be executed through the issuance of new shares and related cash consideration. The meeting will vote on a series of ordinary resolutions covering the overall transaction plan, share issuance terms, lock-up arrangements, profit and loss attribution for the target asset during the transition period, and the transfer of ownership, as well as confirming that the deal complies with multiple PRC and stock exchange regulations governing major asset restructurings and related-party transactions. Shareholders will also consider a supplemental agreement with counterparties and a report on the asset purchase, along with confirmations that the transaction does not constitute a major asset restructuring or reorganization under applicable rules, and a review of the company’s asset purchases and sales over the preceding 12 months, underscoring SMIC’s effort to structure the deal within strict regulatory frameworks and enhance transparency for investors.

The most recent analyst rating on (HK:0981) stock is a Hold with a HK$79.00 price target. To see the full list of analyst forecasts on Semiconductor Manufacturing International stock, see the HK:0981 Stock Forecast page.

SMIC Sets Board Meeting to Approve Q4 2025 Unaudited Results

Semiconductor Manufacturing International Corporation has scheduled a board meeting for 10 February 2026 to approve the publication of its unaudited financial results for the three months ended 31 December 2025. The announcement signals the forthcoming disclosure of the company’s latest quarterly performance, information that will be closely watched by investors and industry stakeholders for insights into its operational momentum and market positioning in the semiconductor sector.

The most recent analyst rating on (HK:0981) stock is a Hold with a HK$79.00 price target. To see the full list of analyst forecasts on Semiconductor Manufacturing International stock, see the HK:0981 Stock Forecast page.

SMIC Sets Share Register Closure Ahead of February 2026 EGM

Semiconductor Manufacturing International Corporation has announced the closure of its register of members from 9 to 12 February 2026, ahead of an extraordinary general meeting scheduled for 12 February 2026. During this period, no share transfers will be registered, and only shareholders whose names appear on the respective Hong Kong and RMB share registers by the specified cut-off dates will be entitled to attend and vote at the meeting, underscoring the company’s standard corporate governance procedures and setting the timetable for key shareholder decisions.

The most recent analyst rating on (HK:0981) stock is a Hold with a HK$79.00 price target. To see the full list of analyst forecasts on Semiconductor Manufacturing International stock, see the HK:0981 Stock Forecast page.

SMIC Boosts Stake as Capital in Key JV SMSC Rises to Over US$10 Billion

Semiconductor Manufacturing International Corporation has moved to further expand and rebalance its major Shanghai-based joint venture, SMSC, by entering a new joint venture agreement and a capital injection and share expansion arrangement with a broader group of state-backed and private investors. The move will raise SMSC’s registered capital from US$6.5 billion to US$10.0773 billion and adjust the ownership structure so that SMIC Holdings’ stake rises from 38.515% to 41.561%, while introducing China IC Fund III, Taixin Dingji and Pioneer IC Fund as new shareholders and diluting some existing fund investors. This capital increase strengthens SMIC’s control and influence over a strategically important manufacturing platform, supports continued capacity expansion in China’s semiconductor sector, and signals ongoing policy-backed financial support that could enhance the company’s competitive positioning and long-term growth prospects in the domestic chip-fabrication ecosystem.

The most recent analyst rating on (HK:0981) stock is a Hold with a HK$67.00 price target. To see the full list of analyst forecasts on Semiconductor Manufacturing International stock, see the HK:0981 Stock Forecast page.

SMIC Moves to Acquire Remaining 49% of SMNC via RMB Share Issuance

Semiconductor Manufacturing International Corporation has agreed key terms for acquiring the remaining 49% equity interest in its affiliate SMNC from existing vendors, with the consideration to be settled through the issuance of renminbi-denominated shares under a specific mandate. The deal qualifies as both a discloseable and connected transaction under Hong Kong Listing Rules, triggering reporting, announcement and independent shareholder approval requirements; SMIC will convene an extraordinary general meeting, form an independent board committee, and rely on an external financial adviser, while vendors and their associates will abstain from voting, underscoring governance scrutiny over a transaction that could further consolidate SMIC’s control over SMNC and refine its capital structure.

The most recent analyst rating on (HK:0981) stock is a Hold with a HK$67.00 price target. To see the full list of analyst forecasts on Semiconductor Manufacturing International stock, see the HK:0981 Stock Forecast page.

SMIC Reports Strong Q3 2025 Financial Results with Optimistic Outlook

SMIC reported its unaudited financial results for the third quarter of 2025, showing a revenue increase to $2,381.8 million, up from $2,209.1 million in the previous quarter, and a gross profit of $522.8 million. The company’s gross margin improved to 22.0%, reflecting a positive trend in its operational efficiency and market positioning. The company anticipates a stable to slightly increased revenue for the fourth quarter, with gross margins expected to range between 18% and 20%, indicating a cautious outlook amidst market uncertainties.

The most recent analyst rating on (HK:0981) stock is a Hold with a HK$75.00 price target. To see the full list of analyst forecasts on Semiconductor Manufacturing International stock, see the HK:0981 Stock Forecast page.

SMIC Updates Audit Committee Charter to Strengthen Financial Oversight

Semiconductor Manufacturing International Corporation has updated its Audit Committee Charter, emphasizing the committee’s role in supervising the company’s financial reporting, internal audit, and risk management systems. The revised charter outlines the composition and responsibilities of the committee, including the requirement for independent non-executive directors with financial expertise, and highlights the importance of maintaining auditor independence and effective audit processes.

The most recent analyst rating on (HK:0981) stock is a Hold with a HK$75.00 price target. To see the full list of analyst forecasts on Semiconductor Manufacturing International stock, see the HK:0981 Stock Forecast page.