AsianFin -- Shares of Semiconductor Manufacturing International Corporation (SMIC) surged more than 6% on the Hong Kong stock market, hitting a new all-time high of HKD 58. The stock's impressive monthly gain exceeds 50%, pushing the company's market value to over HKD 460 billion.
In the latest developments, the Trump administration is reportedly drafting stricter semiconductor restrictions and pressuring key allies to escalate their own limitations on China's chip industry. Analysts have suggested that the semiconductor sector may experience a full recovery by 2025, with a possible acceleration of market competition and industry consolidation, paving the way for sustained profitability and growth for leading companies.
Puyin International recently stated that in the short term, demand for SMIC's products is strong, fueled by domestic subsidies for consumer electronics and geopolitical tensions that have driven advanced orders. The company’s capacity utilization remains at healthy levels, and its product mix has improved. SMIC is optimistic about its long-term prospects, driven by domestic demand for localization and its leadership position in the industry. The company has projected a 35% year-on-year revenue growth for Q1 2025, with a gross margin of 20%, maintaining a strong and potentially rising trend.
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