China Post Securities: Maintains a "Buy" rating on SMIC, with capital expenditures remaining high in 2026, and an optimistic revenue growth outlook

K-LinePoet · 2026-03-18T02:12:42+00:00

ZTO Securities research report analyzes that China's semiconductor industry chain switching effect continues for SMIC. The company maintains leading advantages in technology and customer layout. Sales revenue is expected to grow in 2026, with capital expenditure remaining at high levels. The firm maintains a "Buy" rating.

K-LinePoet

2026-03-18 02:12:42

Abstract generation in progress

China Post Securities Research Report indicates that the effect of the continuous industry chain switching and iteration at SMIC International persists, and Q4 2025 remains a busy season. The company leverages its technological reserves and leading advantages in segments such as BCD, analog, memory, MCU, and mid-to-high-end display drivers, along with customer product layouts, to accelerate validation and expand production. Capital expenditure remains high in 2026, with an optimistic revenue growth outlook. The company’s guidance for Q1 2026 is: flat quarter-over-quarter sales revenue, with gross profit margin between 18% and 20%. Assuming no major changes in the external environment, the company’s 2026 guidance is: revenue growth higher than the industry average, with capital expenditure roughly the same as in 2025. It is expected that the company will achieve revenues of 67.3 billion, 79.1 billion, and 91.0 billion yuan in 2025, 2026, and 2027 respectively, with net profits attributable to the parent of 5.04 billion, 6.32 billion, and 7.61 billion yuan, maintaining a “Buy” rating.

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