A: Basic Information of the Company
Full Name: Semiconductor Manufacturing International Corporation
Stock Code: 688981.SH
Stock Abbreviation: 中芯国际
Region: Shanghai
Industry: Semiconductor Manufacturing
Date of Establishment: 2000
Founder: Zhang Ruji
Company Website: http://www.smics.com
Registered Address: China Shanghai Pilot Free Trade Zone Zhangjiang Road 18th
Market Capitalization: As of October 21, 2024, nearly 860 billion yuan
Business Scope: Research and development, design, and sales of high-end processors used in servers, workstations, and other computing and storage devices
Company Profile: SMIC is one of the world's leading semiconductor foundry companies and a leader in China's integrated circuit manufacturing industry, with advanced process manufacturing capabilities, capacity advantages, and service support, providing global customers with 8-inch and 12-inch wafer foundry and technical services. The company is headquartered in Shanghai, China, with global manufacturing and service bases, and has built multiple 8-inch and 12-inch wafer fabs in Shanghai, Beijing, Tianjin, and Shenzhen.
B: Value Investment Analysis
Key Financial Indicators :
Operating Income: Achieved revenue of approximately 1.75 billion USD in Q1 of 2024, a year-on-year increase of 19.7%, and a quarter-on-quarter increase of 4.3%.
Net Profit: Achieved a net profit attributable to the shareholders of the listed company of 71.8 million USD in Q1 of 2024, a year-on-year decrease of 68.9%.
R&D Investment: In 2022, the company's R&D expenses were 495.3 million USD, accounting for 10.00% of operating income.
Company Investment Value:
As a leading enterprise in the field of high-end processors in China, SMIC's investment value is mainly reflected in the following aspects:
Technological Leadership: The company continues to increase R&D investment, maintaining a technological edge and continuously improving product performance.
Market Position: The company holds a leading position in the domestic high-end processor market, with broad market recognition and application.
Domestic Substitution: With the advancement of domestic substitution, the company's products are expected to further expand their market share and achieve rapid growth.
Company Growth Potential:
The growth potential of SMIC is mainly reflected in the following aspects:
Domestic Substitution: With the increasing demand for semiconductor industry autonomy and control in China, SMIC is expected to take advantage of its local advantages to further expand its market share.
Expansion into Emerging Markets: The rapid development of emerging markets such as 5G and the Internet of Things provides a broad application scenario and growth space for the company's products.
R&D Driven: The company continues to increase R&D investment, promote product innovation, and is expected to gain more high-end market share through technological advantages.
Industry Support Policies:
The state has paid high attention and support to the semiconductor industry, issuing a series of policies to encourage and support the development of the integrated circuit industry. As a leading enterprise in the industry, SMIC is expected to benefit from policy dividends and accelerate technological research and market expansion.
International Policy Risks:
The uncertainty of the international trade environment increases, and Sino-US trade frictions may affect the company's supply chain and overseas markets. The company needs to pay close attention to changes in international policies, flexibly adjust its business strategies, and respond to potential international policy risks.
A.Top's Investment Review:
SMIC, as a leading enterprise in the field of high-end processors in China, demonstrates good investment value with its technological advantages and market position. With the advancement of domestic substitution and the rapid development of emerging markets, the company is expected to achieve sustained growth. However, the uncertainty of the international trade environment also brings certain risks to the company's development. Investors should comprehensively consider the company's market position, technological strength, industry development trends, and potential policy risks to make rational investment decisions.