A Fresh Look at SMIC (SEHK:981) Valuation Following Higher Sales and Upbeat Q4 Guidance

Simply Wall St.11-27

Semiconductor Manufacturing International (SEHK:981) just released its latest earnings, showing increased sales and net income for the nine months ending September 30, 2025. The company also projected...

Source Link

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.

Comments

We need your insight to fill this gap

Leave a comment

{"i18n":{"language":"en_US"},"isChannel":false,"data":{"share":"https://ttm.financial/m/news/2586521502?lang=en_US&edition=fundamental","thumbnail":"https://images.simplywall.st/asset/industry/8212000-choice1-main-header/1585186704996","is_english":true,"pubTime":"2025-11-27 11:25","share_image_url":"https://static.laohu8.com/e9f99090a1c2ed51c021029395664489","id":"2586521502","market":"nz","top_or_hot":-1,"title":"A Fresh Look at SMIC (SEHK:981) Valuation Following Higher Sales and Upbeat Q4 Guidance","media":"Simply Wall St.","content":"<div>\n<p>Semiconductor Manufacturing International (SEHK:981) just released its latest earnings, showing increased sales and net income for the nine months ending September 30, 2025. The company also projected...</p>\n\n<a href=\"https://simplywall.st/stocks/hk/semiconductors/hkg-981/semiconductor-manufacturing-international-shares/news/a-fresh-look-at-smic-sehk981-valuation-following-higher-sale\">Source Link</a>\n\n</div>\n","source":"simplywall_highlight","html":"<!DOCTYPE html>\n<html>\n<head>\n<meta http-equiv=\"Content-Type\" content=\"text/html; charset=utf-8\" />\n<meta name=\"viewport\" content=\"width=device-width,initial-scale=1.0,minimum-scale=1.0,maximum-scale=1.0,user-scalable=no\"/>\n<meta name=\"format-detection\" content=\"telephone=no,email=no,address=no\" />\n<title>A Fresh Look at SMIC (SEHK:981) Valuation Following Higher Sales and Upbeat Q4 Guidance</title>\n<style type=\"text/css\">\na,abbr,acronym,address,applet,article,aside,audio,b,big,blockquote,body,canvas,caption,center,cite,code,dd,del,details,dfn,div,dl,dt,\nem,embed,fieldset,figcaption,figure,footer,form,h1,h2,h3,h4,h5,h6,header,hgroup,html,i,iframe,img,ins,kbd,label,legend,li,mark,menu,nav,\nobject,ol,output,p,pre,q,ruby,s,samp,section,small,span,strike,strong,sub,summary,sup,table,tbody,td,tfoot,th,thead,time,tr,tt,u,ul,var,video{ font:inherit;margin:0;padding:0;vertical-align:baseline;border:0 }\nbody{ font-size:16px; line-height:1.5; color:#999; background:transparent; }\n.wrapper{ overflow:hidden;word-break:break-all;padding:10px; }\nh1,h2{ font-weight:normal; line-height:1.35; margin-bottom:.6em; }\nh3,h4,h5,h6{ line-height:1.35; margin-bottom:1em; }\nh1{ font-size:24px; }\nh2{ font-size:20px; }\nh3{ font-size:18px; }\nh4{ font-size:16px; }\nh5{ font-size:14px; }\nh6{ font-size:12px; }\np,ul,ol,blockquote,dl,table{ margin:1.2em 0; }\nul,ol{ margin-left:2em; }\nul{ list-style:disc; }\nol{ list-style:decimal; }\nli,li p{ margin:10px 0;}\nimg{ max-width:100%;display:block;margin:0 auto 1em; }\nblockquote{ color:#B5B2B1; border-left:3px solid #aaa; padding:1em; }\nstrong,b{font-weight:bold;}\nem,i{font-style:italic;}\ntable{ width:100%;border-collapse:collapse;border-spacing:1px;margin:1em 0;font-size:.9em; }\nth,td{ padding:5px;text-align:left;border:1px solid #aaa; }\nth{ font-weight:bold;background:#5d5d5d; }\n.symbol-link{font-weight:bold;}\n/* header{ border-bottom:1px solid #494756; } */\n.title{ margin:0 0 8px;line-height:1.3;color:#ddd; }\n.meta {color:#5e5c6d;font-size:13px;margin:0 0 .5em; }\na{text-decoration:none; color:#2a4b87;}\n.meta .head { display: inline-block; overflow: hidden}\n.head .h-thumb { width: 30px; height: 30px; margin: 0; padding: 0; border-radius: 50%; float: left;}\n.head .h-content { margin: 0; padding: 0 0 0 9px; float: left;}\n.head .h-name {font-size: 13px; color: #eee; margin: 0;}\n.head .h-time {font-size: 11px; color: #7E829C; margin: 0;line-height: 11px;}\n.small {font-size: 12.5px; display: inline-block; transform: scale(0.9); -webkit-transform: scale(0.9); transform-origin: left; -webkit-transform-origin: left;}\n.smaller {font-size: 12.5px; display: inline-block; transform: scale(0.8); -webkit-transform: scale(0.8); transform-origin: left; -webkit-transform-origin: left;}\n.bt-text {font-size: 12px;margin: 1.5em 0 0 0}\n.bt-text p {margin: 0}\n</style>\n</head>\n<body>\n<div class=\"wrapper\">\n<header>\n<h2 class=\"title\">\nA Fresh Look at SMIC (SEHK:981) Valuation Following Higher Sales and Upbeat Q4 Guidance\n</h2>\n\n<h4 class=\"meta\">\n\n\n2025-11-27 11:25 GMT+8&nbsp;&nbsp;&nbsp;<a href=https://simplywall.st/stocks/hk/semiconductors/hkg-981/semiconductor-manufacturing-international-shares/news/a-fresh-look-at-smic-sehk981-valuation-following-higher-sale><strong>Simply Wall St.</strong></a>\n\n\n</h4>\n\n</header>\n<article>\n<div>\n<p>Semiconductor Manufacturing International (SEHK:981) just released its latest earnings, showing increased sales and net income for the nine months ending September 30, 2025. The company also projected...</p>\n\n<a href=\"https://simplywall.st/stocks/hk/semiconductors/hkg-981/semiconductor-manufacturing-international-shares/news/a-fresh-look-at-smic-sehk981-valuation-following-higher-sale\">Source Link</a>\n\n</div>\n\n\n</article>\n</div>\n</body>\n</html>\n","isBrief":false,"type":0,"news_type":1,"symbol":"00981","symbol_name":"中芯国际","start_time":0,"source_url":"https://simplywall.st/stocks/hk/semiconductors/hkg-981/semiconductor-manufacturing-international-shares/news/a-fresh-look-at-smic-sehk981-valuation-following-higher-sale","article_id":"2586521502","we_media_id":null,"thumbnails":["https://images.simplywall.st/asset/industry/8212000-choice1-main-header/1585186704996"],"rights":{"source":"simplywall_highlight","url":"https://simplywall.st/stocks/hk/semiconductors/hkg-981/semiconductor-manufacturing-international-shares/news/a-fresh-look-at-smic-sehk981-valuation-following-higher-sale","rn_cache_url":null,"directOrigin":true},"url":"https://stock-news.laohu8.com/highlight/detail?id=2586521502","pubTimestamp":1764213959,"columns":[],"sourceInfo":{"source_id":"simplywall_highlight","name":"Simply Wall St."},"weMediaInfo":null,"summary":"Semiconductor Manufacturing International (SEHK:981) just released its latest earnings, showing increased sales and net income for the nine months ending September 30, 2025. The company also projected stable or slightly higher revenue for the upcoming quarter.\nSee our latest analysis for Semiconductor Manufacturing International.\nOn the heels of stronger sales and upbeat guidance, Semiconductor Manufacturing International’s 1-year total shareholder return stands out at 167.9%, showing...","collect":0,"end_time":0,"defaultTopTitle":"simplywall.st","property":["earning"],"viewcount":null,"language":"en","relate_stocks":{"00981":"中芯国际"},"translate_title":"销售额增加和乐观的第四季度指引后，重新审视中芯国际（SEHK：981）的估值","themeId":null,"isJumpTheme":false,"ttsUrl":null,"symbols_score_info":{"00981":1.5},"content_text":"Semiconductor Manufacturing International (SEHK:981) just released its latest earnings, showing increased sales and net income for the nine months ending September 30, 2025. The company also projected stable or slightly higher revenue for the upcoming quarter. See our latest analysis for Semiconductor Manufacturing International. On the heels of stronger sales and upbeat guidance, Semiconductor Manufacturing International’s 1-year total shareholder return stands out at 167.9%, showing remarkable long-term momentum even as the share price has pulled back 16.9% over the last month. With a 137% year-to-date share price return and a five-year total shareholder return above 200%, investors clearly see both growth potential and evolving risks that factor into the current valuation. If you’re keen to spot more rising names in the chip sector, take the next step and explore See the full list for free. With such rapid gains, investors are left to ponder whether Semiconductor Manufacturing International shares offer value at current levels, or if elevated expectations have already been factored in for the next stage of growth. AdvertisementMost Popular Narrative: 0.8% Undervalued With the last close at HK$68.85 and a narrative fair value pegged at HK$69.38, the consensus view signals pricing almost matches future expectations. The stage is set for assumptions about continued growth and operational leverage, which is fueling a debate about whether the current rally has run its course or still has room to run.  Continued investment in customized process technology and domestic innovation aligns SMIC with national policy and strengthens self-sufficiency, which may yield long-term cost efficiencies by lowering dependence on foreign technology and improving gross margins.  Read the complete narrative. Curious which bold forecasts underwrite this valuation? The narrative hinges on outsized improvements in the business model, such as expansion, efficiency, and a profitability jump. Behind the headline, one crucial financial lever explains why the fair value aligns so closely with the market price. Discover the full set of underlying projections that could change investor expectations for years to come. Result: Fair Value of $69.38 (UNDERVALUED) Have a read of the narrative in full and understand what's behind the forecasts. However, ongoing pricing pressures and a heavy reliance on domestic demand could quickly change the company’s outlook if market conditions shift unexpectedly. Find out about the key risks to this Semiconductor Manufacturing International narrative. Another View: High Valuation Ratios Raise Questions While narrative-driven fair value suggests SMIC is undervalued, current valuation ratios tell a more expensive story. The price-to-earnings ratio is 114.2x, which is well above both the industry average of 34x and peers at 25.4x. It is also significantly higher than the fair ratio of 44.6x. This wide gap hints at substantial valuation risk if market sentiment shifts or the company misses aggressive growth forecasts. Could this premium price hold up if the growth story stalls? See what the numbers say about this price — find out in our valuation breakdown. SEHK:981 PE Ratio as at Nov 2025 Build Your Own Semiconductor Manufacturing International Narrative If you want to reach your own conclusions or dig deeper into the numbers, you can analyze the data for yourself and craft a unique perspective in just a few minutes. Do it your way A great starting point for your Semiconductor Manufacturing International research is our analysis highlighting 2 key rewards and 2 important warning signs that could impact your investment decision. Looking for More Investment Ideas? Don’t let opportunity pass you by. The market is brimming with fresh directions. Make your next move count and uncover strategies others might overlook.  Tap into high-yield opportunities by browsing these 15 dividend stocks with yields > 3%. Spot companies rewarding shareholders with consistent payouts and strong dividend growth. Spot innovation surges early by reviewing these 25 AI penny stocks. Artificial intelligence is driving new business models and transforming entire sectors. Maximize potential gains by unlocking these 3578 penny stocks with strong financials. These combine strong fundamentals with the agility to capture emerging trends before the crowd catches on.   This article by Simply Wall St is general in nature. We provide commentary based on historical data\n    and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your\n    financial situation. We aim to bring you long-term focused analysis driven by fundamental data.\n    Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.\n    Simply Wall St has no position in any stocks mentioned.New: Manage All Your Stock Portfolios in One PlaceWe've created the ultimate portfolio companion for stock investors, and it's free.• Connect an unlimited number of Portfolios and see your total in one currency• Be alerted to new Warning Signs or Risks via email or mobile• Track the Fair Value of your stocksTry a Demo Portfolio for FreeHave feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team@simplywallst.com","kind":"highlight","is_publish_news":true,"is_publish_highlight":false,"is_publish_live":false,"is_publish_wemedia":null,"editions":null,"column":"","sentiment":"1","news_tag":"dataReport","news_rank":0,"symbols":[],"gpt_button":0,"need_auth":false,"code":"91000000","status":"200"},"commentList":[],"isCommentEnd":true,"newsSizeData":{"likeSize":1,"commentSize":0,"repostSize":1,"favoriteSize":0,"likeStatus":false,"favoriteStatus":false},"APP":{"userAgent":"Mozilla/5.0 AppleWebKit/537.36 (KHTML, like Gecko; compatible; ClaudeBot/1.0; +claudebot@anthropic.com)","isDev":false,"isTTM":true,"deviceId":"web-server-community-laohu8-v3","version":"4.35.9","shortVersion":"4.35.9","platform":"web","vendor":"web","appName":"ttm","isIOS":false,"isAndroid":false,"isTiger":false,"isTHS":false,"isWeiXin":false,"isWeiXinMini":false,"isWeiBo":false,"isQQ":false,"isBaiduSwan":false,"isBaiduBox":false,"isDingTalk":false,"isToutiao":false,"isOnePlus":false,"isHuaWei":false,"isXiaomi":false,"isXiaomiWebView":false,"isOppo":false,"isVivo":false,"isSamsung":false,"isMobile":false},"href":"/m/news/2586521502","isCrawlerRequest":true}