0223 GMT - SMIC is well positioned to capitalize on China's accelerating chip localization, DBS analyst Jim Au says in a research note. DBS expects SMIC's earnings to recover to $945 million this year despite pressure on average selling prices for wafers and rising depreciation expenses, the analyst says. Improving consumer electronics and smartphone end-market demand, alongside new product launches in China, are expected to outweigh this margin drag. Au thinks SMIC's utilization rate has bottomed out and will remain above 89% versus the global average of 76% in 2025. DBS upgrades SMIC's A-share rating to hold from sell and raises its target price to CNY83.00 from CNY50.01. Shares are last at CNY85.90. (sherry.qin@wsj.com)
(END) Dow Jones Newswires
May 11, 2025 22:23 ET (02:23 GMT)
Copyright (c) 2025 Dow Jones & Company, Inc.
Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.