[ET Net News Agency, 20 November 2019] Daiwa Research lifted its target price for SMIC
(00981) to HK$9.2 from HK$8 and maintained its "underperform" rating.
The research house raised its 2019-20 net profit forecasts by 41% each to factor in the
low base, higher-than-expected government subsidies and gross-margin trajectory.
Management painted a rosy outlook for 2020 after its business transition; Daiwa
concurred and expects its top line to return to growth, but it remains concerned about
SMIC's leading-edge technology execution. (KL)