Resurgence in China's Consumer-Electronics, Auto Demand Bode Well for SMIC -- Market Talk

Dow Jones

Feb 13, 2025

0712 GMT - China's resurging consumer-electronics demand and solid automotive growth could boost SMIC's chip business over the next five years, DBS analyst Jim Au says in a research note. SMIC is well-positioned to capitalize on the acceleration of localization of semiconductor production while DeepSeek's breakthrough further strengthens capital flows for foundries making graphic processing units and AI accelerators, he says. Despite pressure on average selling prices for wafers amid competition and rising depreciation expenses, improving consumer-electronics demand and increasing AI-related product launches in China could outweigh the margin drag for SMIC, Au says. DBS maintains a buy call on SMIC's H-shares but raises its target to HK$53.20 from HK$37.00. Shares are last at HK$46.35. (sherry.qin@wsj.com)

(END) Dow Jones Newswires

February 13, 2025 02:12 ET (07:12 GMT)

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SMIC is well-positioned to capitalize on the acceleration of localization of semiconductor production while DeepSeek's breakthrough further strengthens capital flows for foundries making graphic processing units and AI accelerators, he says. Despite pressure on average selling prices for wafers amid competition and rising depreciation expenses, improving consumer-electronics demand and increasing AI-related product launches in China could outweigh the margin drag for SMIC, Au says. DBS maintains a buy call on SMIC's H-shares but raises its target to HK$53.20 from HK$37.00. Shares are last at HK$46.35. (sherry.qin@wsj.com) \n</p>\n<pre>\n \n</pre>\n<p>\n  (END) Dow Jones Newswires\n</p>\n<p>\n  February 13, 2025 02:12 ET (07:12 GMT)\n</p>\n<p>\n  Copyright (c) 2025 Dow Jones &amp; Company, Inc.\n</p>\n</font>","source":null,"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>Resurgence in China's Consumer-Electronics, Auto Demand Bode Well for SMIC -- Market Talk</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\">\nResurgence in China's Consumer-Electronics, Auto Demand Bode Well for SMIC -- Market Talk\n</h2>\n\n<h4 class=\"meta\">\n\n\n<div class=\"head\" \">\n\n\n<div class=\"h-thumb\" style=\"background-image:url(https://static.tigerbbs.com/150f88aa4d182df19190059f4a365e99);background-size:cover;\"></div>\n\n<div class=\"h-content\">\n<p class=\"h-name\">Dow Jones </p>\n<p class=\"h-time\">2025-02-13 15:12</p>\n</div>\n\n</div>\n\n\n</h4>\n\n</header>\n<article>\n<font class=\"NormalMinus1\" face=\"Arial\">\n<p>\n     0712 GMT - China's resurging consumer-electronics demand and solid automotive growth could boost SMIC's chip business over the next five years, DBS analyst Jim Au says in a research note. SMIC is well-positioned to capitalize on the acceleration of localization of semiconductor production while DeepSeek's breakthrough further strengthens capital flows for foundries making graphic processing units and AI accelerators, he says. Despite pressure on average selling prices for wafers amid competition and rising depreciation expenses, improving consumer-electronics demand and increasing AI-related product launches in China could outweigh the margin drag for SMIC, Au says. DBS maintains a buy call on SMIC's H-shares but raises its target to HK$53.20 from HK$37.00. Shares are last at HK$46.35. (sherry.qin@wsj.com) \n</p>\n<pre>\n \n</pre>\n<p>\n  (END) Dow Jones Newswires\n</p>\n<p>\n  February 13, 2025 02:12 ET (07:12 GMT)\n</p>\n<p>\n  Copyright (c) 2025 Dow Jones &amp; Company, Inc.\n</p>\n</font>\n\n</article>\n</div>\n</body>\n</html>\n","isBrief":false,"type":0,"news_type":1,"symbol":"LU0096374516.USD","symbol_name":"CT (LUX) I ASIA EQUITY INCOME \"DU\" (USD) ACC","start_time":0,"source_url":"https://dowjonesnews.com/newdjn/logon.aspx?AL=N","article_id":"2511599050","we_media_id":"106","thumbnails":[],"rights":null,"url":"https://stock-news.laohu8.com/highlight/detail?id=2511599050","pubTimestamp":1739430720,"columns":[],"sourceInfo":null,"weMediaInfo":{"media_name":"Dow Jones","introduction":"Dow Jones publishes the world’s most trusted business news and financial information in a variety of media.","home_visible":0,"id":"106","head_image":"https://static.tigerbbs.com/150f88aa4d182df19190059f4a365e99"},"summary":"0712 GMT - China's resurging consumer-electronics demand and solid automotive growth could boost SMIC's chip business over the next five years, DBS analyst Jim Au says in a research note. SMIC is well-positioned to capitalize on the acceleration of localization of semiconductor production while DeepSeek's breakthrough further strengthens capital flows for foundries making graphic processing units and AI accelerators, he says. Despite pressure on average selling prices for wafers amid competition and rising depreciation expenses, improving consumer-electronics demand and increasing AI-related product launches in China could outweigh the margin drag for SMIC, Au says. DBS maintains a buy call on SMIC's H-shares but raises its target to HK$53.20 from HK$37.00. Shares are last at HK$46.35. 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SMIC is well-positioned to capitalize on the acceleration of localization of semiconductor production while DeepSeek's breakthrough further strengthens capital flows for foundries making graphic processing units and AI accelerators, he says. Despite pressure on average selling prices for wafers amid competition and rising depreciation expenses, improving consumer-electronics demand and increasing AI-related product launches in China could outweigh the margin drag for SMIC, Au says. DBS maintains a buy call on SMIC's H-shares but raises its target to HK$53.20 from HK$37.00. Shares are last at HK$46.35. (sherry.qin@wsj.com) \n\n\n \n\n\n  (END) Dow Jones Newswires\n\n\n  February 13, 2025 02:12 ET (07:12 GMT)\n\n\n  Copyright (c) 2025 Dow Jones & Company, Inc.","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":"","news_rank":0,"symbols":[],"gpt_button":0,"need_auth":true,"code":"91000000","status":"200"}}}