On October 10, Huatai Securities unveiled a research report, hiking the target price for SMIC's (00981.HK) H-shares from HK$63 to HK$119, and the target price for its A-shares from RMB 118.3 to RMB 238, all while retaining a "Buy" recommendation. Huatai Securities has kept its net profit projections for SMIC steady from 2025 to 2027, forecasting annual growth rates of 26%, 22%, and 27%, respectively. It anticipates net profits will climb to US$620 million, US$760 million, and US$960 million over this period. Huatai Securities is of the view that the concentrated rollout of domestic AI chips, with Huawei as a prime example, will spur swift growth in the demand for domestic advanced process foundry services. Concurrently, the intensification of U.S. export restrictions on equipment to China is projected to elevate the market share of domestic foundries like SMIC. Huatai Securities counsels investors to keep a close eye on the trends in SMIC's future product unit prices and shifts in minority shareholder equity, while maintaining an upbeat stance on its strengths in the advanced process arena. It is expected that following the completion of its A-share rights issue, SMIC will embark on a fresh expansion phase, fully leveraging the growth prospects in the advanced process market.