SMIC stock gets a 26 percent to 28 percent margin outlook

Published on 10/07/2026 at 09:17 | Editorial responsibility: Rafael Müller, Editor-in-Chief AD HOC NEWS

SMIC stock's second-quarter revenue reached USD 3,006 million, while gross margin rose to 25.3 percent. Goldman Sachs set a HKD 153 target on September 28, 2026.

SMIC, KYG8020E1199, Illustration mit AI erstellt.

SMIC (KYG8020E1199) guided to a third-quarter gross margin of 26 percent to 28 percent after second-quarter revenue reached USD 3,006 million, up 20 percent sequentially. The result keeps pricing, utilization and capacity expansion at the center of the investment case.

Q2 revenue cleared USD 3 billion

According to Yahoo Finance in the August 14, 2026 earnings call transcript, second-quarter gross margin was 25.3 percent, up 5.2 percentage points sequentially, while profit attributable to the company reached USD 479 million.

The same call showed first-half 2026 revenue of USD 5,511 million, up 23.7 percent year over year, with first-half gross margin at 22.9 percent. The company also reported second-quarter operating cash flow of USD 2,522 million, giving the growth story a cash-flow counterpart.

Margin guidance raises the bar

SMIC expects third-quarter revenue to increase 2 percent to 4 percent sequentially and gross margin to reach 26 percent to 28 percent, according to Yahoo Finance. Management also said utilization rose to 93.7 percent in Q2, while blended average selling prices increased 5.7 percent.

Goldman Sachs kept a Buy rating and raised its SMIC target from HKD 135 to HKD 153 on September 28, 2026, according to GMT EIGHT. The call for higher margins matters because depreciation and new capacity can absorb part of the benefit from stronger wafer pricing.

Stock remains below its yearly high

SMIC was last at CNY 111.99 on the Shanghai Stock Exchange on September 30, 2026, at 3:00 p.m. CST, down 4.70 percent from the prior session. The same session showed a CNY 111.30 low and a CNY 118.18 high, while the 52-week range stood at CNY 91.20 to CNY 176.34.

Market capitalization was CNY 645.2 billion as of September 30, 2026, with volume of 42,874,573 shares. The stock therefore sits 36.47 percent below its 52-week high, leaving the Q3 margin outcome as the next concrete test of whether stronger pricing can offset the cost of expansion.