On November 17, CLSA issued a research report, revealing that SMIC (00981.HK) outperformed market expectations with its third - quarter financial results. The company's revenue witnessed a 7.8% quarter - on - quarter growth, soaring to US$2.38 billion, which went beyond the previously forecasted increase range of 5% to 7%.

In the same quarter, SMIC's net profit surged by 29% on a year - on - year basis, reaching US$192 million and outstripping market expectations by 6%. CLSA pointed out that although the fourth quarter is typically a slow period, the demand is projected to stay robust. Both the current capacity utilization rate and wafer production are exceeding the guidance provided for the fourth quarter.

The investment bank anticipates that SMIC's capital expenditures in 2025 will either remain stable or experience a slight uptick compared to the previous year. Moreover, it has revised its profit forecasts for the period from 2025 to 2027 upwards by 5% to 22%, indicating an expected enhancement in gross margins. Furthermore, CLSA has boosted its target price for SMIC's H - shares from HK$58.8 to HK$93.3, while maintaining an 'Outperform' rating.