Smic Shares Slip On Fourth: quarter margin miss, weak outlook

Semiconductor Manufacturing International

11/02/2026 02:39

** Hong Kong shares of Semiconductor Manufacturing International Corp 0981.HK (SMIC) fall 4.6% to HK$68.25, on track for biggest one-day pct drop since November 21

** Stock on course to snap three straight sessions of gains

** Shanghai-listed stock 688981.SS slips 2.3% to 113.5 yuan, heading for biggest one-day pct decline since February 5

** China's largest contract chipmaker on Tuesday reported a 60.7% y/y increase in fourth-quarter profit with revenue up 12.8%

** Revenue is expected to be flat in first quarter and gross margin is seen in the range of 18% to 20%

** Revenue growth for 2026 is expected to be higher than industry average and capital expenditure is expected to be roughly flat compared to that of 2025

** Sunwah Kingsway says 4Q25 revenue beat but gross profit margin missed expectation, while guidance for 1Q26 is below market expectations, signalling a cautious view on near-term  demand and profitability recovery

** YTD, Hong Kong stock down 3.6%, Shanghai shares down  7.3%, Hang Seng TECH Index .HSTECH down 7.4%

 (Reporting by Donny Kwok)

 ((donny.kwok@thomsonreuters.com))