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981

Semiconductor Manufacturing InternationalSEHK:981 Stock Report

Market Cap

HK$172.7b

7D

-2.5%

1Y

13.0%

Updated

23 Sep, 2021

Data

Company Financials +
981 fundamental analysis
Snowflake Score
Valuation2/6
Future Growth0/6
Past Performance4/6
Financial Health6/6
Dividends0/6

981 Overview

Semiconductor Manufacturing International Corporation, an investment holding company, engages in the computer-aided design, manufacture, testing, packaging, and trading of integrated circuits (IC) and other semiconductor services.

Semiconductor Manufacturing International Competitors

Hua Hong Semiconductor

SEHK:1347

HK$54.2b

Taiwan Semiconductor Manufacturing

TWSE:2330

NT$15.2t

Intel

NasdaqGS:INTC

US$217.0b

International Business Machines

NYSE:IBM

US$120.7b

Price History & Performance

Summary of all time highs, changes and price drops for Semiconductor Manufacturing International
Historical stock prices
Current Share PriceHK$21.85
52 Week HighHK$16.74
52 Week LowHK$31.95
Beta0.49
1 Month Change-9.15%
3 Month Change-8.19%
1 Year Change12.98%
3 Year Change161.36%
5 Year Change145.51%
Change since IPO-11.72%

Recent News & Updates

Sep 14
The Returns On Capital At Semiconductor Manufacturing International (HKG:981) Don't Inspire Confidence

The Returns On Capital At Semiconductor Manufacturing International (HKG:981) Don't Inspire Confidence

What are the early trends we should look for to identify a stock that could multiply in value over the long term...

Jul 26
Is Semiconductor Manufacturing International (HKG:981) A Risky Investment?

Is Semiconductor Manufacturing International (HKG:981) A Risky Investment?

Legendary fund manager Li Lu (who Charlie Munger backed) once said, 'The biggest investment risk is not the volatility...

Shareholder Returns

981HK SemiconductorHK Market
7D-2.5%0.8%-0.9%
1Y13.0%48.6%10.1%

Return vs Industry: 981 underperformed the Hong Kong Semiconductor industry which returned 41% over the past year.

Return vs Market: 981 exceeded the Hong Kong Market which returned 5.6% over the past year.

Price Volatility

Is 981's price volatile compared to industry and market?
981 volatility
981 Beta0.49
Industry Beta0.77
Market Beta1

Stable Share Price: 981 is not significantly more volatile than the rest of Hong Kong stocks over the past 3 months, typically moving +/- 6% a week.

Volatility Over Time: 981's weekly volatility (6%) has been stable over the past year.

About the Company

FoundedEmployeesCEOWebsite
200017,354Hai Jun Zhaohttps://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) and other semiconductor services. It is also involved in wafer manufacturing, wafer probing and bumping, technology development, design service, mask manufacturing, and assembly and final testing of integrated circuits; and sale of self-manufactured products. In addition, the company designs and manufactures semiconductor masks; and offers marketing related services.

Semiconductor Manufacturing International Fundamentals Summary

How do Semiconductor Manufacturing International's earnings and revenue compare to its market cap?
981 fundamental statistics
Market CapUS$22.18b
Earnings (TTM)US$1.36b
Revenue (TTM)US$4.51b

16.3x

P/E Ratio

4.9x

P/S Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
981 income statement (TTM)
RevenueUS$4.51b
Cost of RevenueUS$3.42b
Gross ProfitUS$1.09b
Expenses-US$263.23m
EarningsUS$1.36b

Last Reported Earnings

Jun 30, 2021

Next Earnings Date

n/a

Earnings per share (EPS)0.18
Gross Margin24.25%
Net Profit Margin30.08%
Debt/Equity Ratio25.2%

How did 981 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?

16.34x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: 981 (HK$21.85) is trading above our estimate of fair value (HK$6.88)

Significantly Below Fair Value: 981 is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: 981 is good value based on its PE Ratio (16.3x) compared to the Hong Kong Semiconductor industry average (24.3x).

PE vs Market: 981 is poor value based on its PE Ratio (16.3x) compared to the Hong Kong market (9.8x).


Price to Earnings Growth Ratio

PEG Ratio: 981's earnings are forecast to decline next year, so we can't calculate its PEG ratio.


Price to Book Ratio

PB vs Industry: 981 is good value based on its PB Ratio (1.4x) compared to the HK Semiconductor industry average (2.3x).


Future Growth

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

-10.9%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: 981's earnings are forecast to decline over the next 3 years (-10.9% per year).

Earnings vs Market: 981's earnings are forecast to decline over the next 3 years (-10.9% per year).

High Growth Earnings: 981's earnings are forecast to decline over the next 3 years.

Revenue vs Market: 981's revenue (8.4% per year) is forecast to grow slower than the Hong Kong market (12.3% per year).

High Growth Revenue: 981's revenue (8.4% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: 981's Return on Equity is forecast to be low in 3 years time (4.9%).


Past Performance

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

29.2%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: 981 has a high level of non-cash earnings.

Growing Profit Margin: 981's current net profit margins (30.1%) are higher than last year (11.3%).


Past Earnings Growth Analysis

Earnings Trend: 981's earnings have grown significantly by 29.2% per year over the past 5 years.

Accelerating Growth: 981's earnings growth over the past year (243.3%) exceeds its 5-year average (29.2% per year).

Earnings vs Industry: 981 earnings growth over the past year (243.3%) exceeded the Semiconductor industry 52%.


Return on Equity

High ROE: 981's Return on Equity (5.8%) is considered low.


Financial Health

How is Semiconductor Manufacturing International's financial position?


Financial Position Analysis

Short Term Liabilities: 981's short term assets ($14.1B) exceed its short term liabilities ($3.5B).

Long Term Liabilities: 981's short term assets ($14.1B) exceed its long term liabilities ($5.9B).


Debt to Equity History and Analysis

Debt Level: 981's debt to equity ratio (25.2%) is considered satisfactory.

Reducing Debt: 981's debt to equity ratio has reduced from 51.3% to 25.2% over the past 5 years.

Debt Coverage: 981's debt is well covered by operating cash flow (47.9%).

Interest Coverage: 981 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?

2.10%

Forecast Dividend Yield


Dividend Yield vs Market

Notable Dividend: Unable to evaluate 981's dividend yield against the bottom 25% of dividend payers, as the company has not reported any recent payouts.

High Dividend: Unable to evaluate 981'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 981's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if 981's dividend payments have been increasing.


Current Payout to Shareholders

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


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of 981's dividend in 3 years as they are not forecast to pay a notable one for the Hong Kong market.


Next Steps

Management

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

4.1yrs

Average management tenure


CEO

Hai Jun Zhao (57 yo)

4.33yrs

Tenure

US$1,111,000

Compensation

Dr. Hai Jun 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 a...


CEO Compensation Analysis

Compensation vs Market: Hai Jun's total compensation ($USD1.11M) is about average for companies of similar size in the Hong Kong market ($USD1.02M).

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


Leadership Team

Experienced Management: 981's management team is considered experienced (4.1 years average tenure).


Board Members

Experienced Board: 981's board of directors are considered experienced (6.5 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 been diluted in the past year, with total shares outstanding growing by 2.7%.


Top Shareholders

Company Information

Semiconductor Manufacturing International Corporation's employee growth, exchange listings and data sources


Key Information

  • Name: Semiconductor Manufacturing International Corporation
  • Ticker: 981
  • Exchange: SEHK
  • Founded: 2000
  • Industry: Semiconductors
  • Sector: Semiconductors
  • Market Cap: HK$172.688b
  • Shares outstanding: 7.90b
  • Website: https://www.smics.com

Number of Employees


Location

  • Semiconductor Manufacturing International Corporation
  • No.18 Zhangjiang Road
  • Pudong New Area
  • Shanghai
  • Shanghai Province
  • 201203
  • China

Listings


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/09/23 15:54
End of Day Share Price2021/09/23 00:00
Earnings2021/06/30
Annual Earnings2020/12/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.