Semiconductor Manufacturing International (SHSE:688981) - Share price, News & Analysis

688981 fundamental analysis
Snowflake Score
Valuation	5/6
Future Growth	0/6
Past Performance	4/6
Financial Health	6/6
Dividends	0/6

688981 Stock Overview

Rewards

Trading at 37.3% below our estimate of its fair value

Earnings grew by 148.1% over the past year

Risk Analysis

Earnings are forecast to decline by an average of 6.5% per year for the next 3 years

Large one-off items impacting financial results

Semiconductor Manufacturing International Competitors

China Resources Microelectronics

SHSE:688396

CN¥65.9b

Taiwan Semiconductor Manufacturing

TWSE:2330

NT$13.5t

Samsung Electronics

KOSE:A005930

₩444.2t

Intel

NasdaqGS:INTC

US$178.3b

Price History & Performance

Summary of all time highs, changes and price drops for Semiconductor Manufacturing International
Historical stock prices
Current Share Price	HK$42.40
52 Week High	HK$74.90
52 Week Low	HK$37.10
Beta	0.57
1 Month Change	-1.97%
3 Month Change	-17.62%
1 Year Change	-23.02%
3 Year Change	n/a
5 Year Change	n/a
Change since IPO	-48.87%

Shareholder Returns

	688981	CN Semiconductor	CN Market
7D	6.2%	7.3%	3.6%
1Y	-23.0%	9.8%	-14.6%

Return vs Industry: 688981 underperformed the CN Semiconductor industry which returned 9.8% over the past year.

Return vs Market: 688981 underperformed the CN Market which returned -14.6% over the past year.

Price Volatility

Is 688981's price volatile compared to industry and market?
688981 volatility
688981 Average Weekly Movement	4.8%
Semiconductor Industry Average Movement	7.9%
Market Average Movement	7.3%
10% most volatile stocks in CN Market	10.2%
10% least volatile stocks in CN Market	5.3%

Stable Share Price: 688981 is less volatile than 75% of CN stocks over the past 3 months, typically moving +/- 5% a week.

Volatility Over Time: 688981's weekly volatility (5%) has been stable over the past year.

About the Company

Founded	Employees	CEO	Website
2000	17,681	Haijun Zhao	https://www.smics.com

Semiconductor Manufacturing International Corporation, an investment holding company, engages in the computer-aided design, manufacture, testing, packaging, and trading of integrated circuits (IC) in North America, China, rest of Asia, Hong Kong, and Eurasia. It is also involved in the technical research and development, manufacture, and sale of semiconductor masks; provision of semiconductor foundry and technology services; and construction, operation, and management of living quarters. In addition, the company offers one-stop supporting services in design, IP support, photomask manufacturing, etc.; marketing related services; and private education services.

Semiconductor Manufacturing International Fundamentals Summary

How do Semiconductor Manufacturing International's earnings and revenue compare to its market cap?
688981 fundamental statistics
Market Cap	US$15.76b
Earnings (TTM)	US$1.99b
Revenue (TTM)	US$6.18b

7.9x

P/E Ratio

2.5x

P/S Ratio

Is 688981 overvalued?

See Fair Value and valuation analysis

Earnings & Revenue

Key profitability statistics from the latest earnings report
688981 income statement (TTM)
Revenue	US$6.18b
Cost of Revenue	US$4.01b
Gross Profit	US$2.18b
Other Expenses	US$185.84m
Earnings	US$1.99b

Last Reported Earnings

Mar 31, 2022

Next Earnings Date

n/a

Earnings per share (EPS)	0.25
Gross Margin	35.20%
Net Profit Margin	32.19%
Debt/Equity Ratio	24.7%

How did 688981 perform over the long term?

See historical performance and comparison

Valuation

Is Semiconductor Manufacturing International undervalued compared to its fair value and its price relative to the market?

Valuation Score

5/6

Valuation Score 5/6

Below Fair Value
Significantly Below Fair Value
PE vs Industry
PE vs Market
PEG Ratio
PB vs Industry

37.3%

Undervalued compared to fair value

Share Price vs. Fair Value

Below Fair Value: 688981 (CN¥42.4) is trading below our estimate of fair value (CN¥67.6)

Significantly Below Fair Value: 688981 is trading below fair value by more than 20%.

Price To Earnings Ratio

PE vs Industry: 688981 is good value based on its PE Ratio (7.9x) compared to the CN Semiconductor industry average (44.8x).

PE vs Market: 688981 is good value based on its PE Ratio (7.9x) compared to the CN market (30.4x).

Price to Earnings Growth Ratio

PEG Ratio: 688981's earnings are forecast to decline next year, so we can't calculate its PEG ratio.

Price to Book Ratio

PB vs Industry: 688981 is good value based on its PB Ratio (0.9x) compared to the CN Semiconductor industry average (4.3x).

Future Growth

How is Semiconductor Manufacturing International forecast to perform in the next 1 to 3 years based on estimates from 24 analysts?

Future Growth Score

0/6

Future Growth Score 0/6

Earnings vs Savings Rate
Earnings vs Market
High Growth Earnings
Revenue vs Market
High Growth Revenue
Future ROE

-6.5%

Forecasted annual earnings growth

Earnings and Revenue Growth Forecasts

Analyst Future Growth Forecasts

Earnings vs Savings Rate: 688981's earnings are forecast to decline over the next 3 years (-6.5% per year).

Earnings vs Market: 688981's earnings are forecast to decline over the next 3 years (-6.5% per year).

High Growth Earnings: 688981's earnings are forecast to decline over the next 3 years.

Revenue vs Market: 688981's revenue (9.1% per year) is forecast to grow slower than the CN market (17.2% per year).

High Growth Revenue: 688981's revenue (9.1% per year) is forecast to grow slower than 20% per year.

Earnings per Share Growth Forecasts

Future Return on Equity

Future ROE: 688981's Return on Equity is forecast to be low in 3 years time (7.1%).

Past Performance

How has Semiconductor Manufacturing International performed over the past 5 years?

Past Performance Score

4/6

Past Performance Score 4/6

Quality Earnings
Growing Profit Margin
Earnings Trend
Accelerating Growth
Earnings vs Industry
High ROE

53.1%

Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: 688981 has a large one-off gain of $726.9M impacting its March 31 2022 financial results.

Growing Profit Margin: 688981's current net profit margins (32.2%) are higher than last year (19.5%).

Past Earnings Growth Analysis

Earnings Trend: 688981's earnings have grown significantly by 53.1% per year over the past 5 years.

Accelerating Growth: 688981's earnings growth over the past year (148.1%) exceeds its 5-year average (53.1% per year).

Earnings vs Industry: 688981 earnings growth over the past year (148.1%) exceeded the Semiconductor industry 66.5%.

Return on Equity

High ROE: 688981's Return on Equity (8.5%) is considered low.

Financial Health

How is Semiconductor Manufacturing International's financial position?

Financial Health Score

6/6

Financial Health Score 6/6

Short Term Liabilities
Long Term Liabilities
Debt Level
Reducing Debt
Debt Coverage
Interest Coverage

Financial Position Analysis

Short Term Liabilities: 688981's short term assets ($15.9B) exceed its short term liabilities ($4.8B).

Long Term Liabilities: 688981's short term assets ($15.9B) exceed its long term liabilities ($6.4B).

Debt to Equity History and Analysis

Debt Level: 688981 has more cash than its total debt.

Reducing Debt: 688981's debt to equity ratio has reduced from 39.6% to 24.7% over the past 5 years.

Debt Coverage: 688981's debt is well covered by operating cash flow (63.6%).

Interest Coverage: 688981 earns more interest than it pays, so coverage of interest payments is not a concern.

Balance Sheet

Dividend

What is Semiconductor Manufacturing International current dividend yield, its reliability and sustainability?

Dividend Score

0/6

Dividend Score 0/6

Notable Dividend
High Dividend
Stable Dividend
Growing Dividend
Earnings Coverage
Future Dividend Coverage

Dividend Yield vs Market

Notable Dividend: Unable to evaluate 688981's dividend yield against the bottom 25% of dividend payers, as the company has not reported any recent payouts.

High Dividend: Unable to evaluate 688981's dividend yield against the top 25% of dividend payers, as the company has not reported any recent payouts.

Stability and Growth of Payments

Stable Dividend: Insufficient data to determine if 688981's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if 688981's dividend payments have been increasing.

Earnings Payout to Shareholders

Earnings Coverage: Insufficient data to calculate payout ratio to determine if its dividend payments are covered by earnings.

Cash Payout to Shareholders

Cash Flow Coverage: Unable to calculate sustainability of dividends as 688981 has not reported any payouts.

Next Steps

Explore strong dividend paying companies in the Semiconductors industry.

Management

How experienced are the management team and are they aligned to shareholders interests?

4.8yrs

Average management tenure

CEO

Haijun Zhao (57 yo)

5yrs

Tenure

US$1,564,000

Compensation

Dr. Haijun Zhao has been Co-Chief Executive Officer and Executive Director of Semiconductor Manufacturing International Corporation since May 10, 2017 and October 16, 2017, respectively. Dr. Zhao served as...

CEO Compensation Analysis

Compensation vs Market: Haijun's total compensation ($USD1.56M) is above average for companies of similar size in the CN market ($USD346.20K).

Compensation vs Earnings: Haijun's compensation has increased by more than 20% in the past year.

Leadership Team

Experienced Management: 688981's management team is considered experienced (4.8 years average tenure).

Board Members

Experienced Board: 688981's board of directors are considered experienced (7.2 years average tenure).

Ownership

Who are the major shareholders and have insiders been buying or selling?

Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.

Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.

Data	Last Updated (UTC time)
Company Analysis	2022/05/16 00:00
End of Day Share Price	2022/05/16 00:00
Earnings	2022/03/31
Annual Earnings	2021/12/31