SEHK:981

Stock Analysis Report

Semiconductor Manufacturing International

Executive Summary

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.

Snowflake

Fundamentals

Reasonable growth potential with mediocre balance sheet.


Similar Companies

Share Price & News

How has Semiconductor Manufacturing International's share price performed over time and what events caused price changes?


Latest Share Price and Events


Market Performance


7 Day Return

-1.1%

981

-2.0%

HK Semiconductor

0.3%

HK Market


1 Year Return

42.9%

981

32.6%

HK Semiconductor

-1.5%

HK Market

Return vs Industry: 981 exceeded the Hong Kong Semiconductor industry which returned 32.6% over the past year.

Return vs Market: 981 exceeded the Hong Kong Market which returned -1.5% over the past year.


Shareholder returns

981IndustryMarket
7 Day-1.1%-2.0%0.3%
30 Day-9.0%-8.3%0.5%
90 Day10.8%6.0%-4.4%
1 Year42.9%42.9%34.5%32.6%2.1%-1.5%
3 Year-1.4%-1.4%16.4%10.4%14.7%3.2%
5 Year23.5%23.5%-17.4%-24.3%21.5%1.2%

Price Volatility Vs. Market

How volatile is Semiconductor Manufacturing International's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

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

86.35x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: Insufficient data to calculate 981's fair value to establish if it is undervalued.

Significantly Below Fair Value: Insufficient data to calculate 981's fair value to establish if it is undervalued.


Price To Earnings Ratio

PE vs Industry: 981 is poor value based on its PE Ratio (86.3x) compared to the Semiconductor industry average (14.9x).

PE vs Market: 981 is poor value based on its PE Ratio (86.3x) compared to the Hong Kong market (10.4x).


Price to Earnings Growth Ratio

PEG Ratio: 981 is poor value based on its PEG Ratio (2.9x)


Price to Book Ratio

PB vs Industry: 981 is good value based on its PB Ratio (1x) compared to the HK Semiconductor industry average (1.4x).


Next Steps

Future Growth

How is Semiconductor Manufacturing International forecast to perform in the next 1 to 3 years based on estimates from 20 analysts?

29.7%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: 981's forecast earnings growth (29.7% per year) is above the savings rate (2%).

Earnings vs Market: 981's earnings (29.7% per year) are forecast to grow faster than the Hong Kong market (11.2% per year).

High Growth Earnings: earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: 981's revenue (10.6% per year) is forecast to grow faster than the Hong Kong market (10.4% per year).

High Growth Revenue: 981's revenue (10.6% 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 (2.3%).


Next Steps

Past Performance

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

-5.8%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Earnings Trend: 981's earnings have declined by -5.8% per year over the past 5 years.

Accelerating Growth: 981's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: 981 had negative earnings growth (-52.8%) over the past year, making it difficult to compare to the Semiconductor industry average (5.7%).


Return on Equity

High ROE: 981's Return on Equity (0.2%) is considered low.


Return on Assets

ROA vs Industry: 981's Return on Assets is below or equal to the Semiconductor industry average last year.


Return on Capital Employed

ROCE Improving: 981 is currently unprofitable, so its Return on Capital Employed is negative.


Next Steps

Financial Health

How is Semiconductor Manufacturing International's financial position?


Financial Position Analysis

Short Term Liabilities: 981's short term assets ($6.8B) exceeds its short term liabilities ($3.3B)

Long Term Liabilities: 981's short term assets (6.8B) exceeds its long term liabilities (3.2B)


Debt to Equity History and Analysis

Debt Level: 981's debt to equity ratio (41.8%) is considered high

Reducing Debt: 981's debt to equity ratio has increased from 39.7% to 41.8% over the past 5 years.

Debt Coverage: 981's debt is well covered by operating cash flow (23.7%).

Interest Coverage: Insufficient data to determine if 981's interest payments on its debt are well covered by EBIT.


Balance Sheet

Inventory Level: 981 has a high level of physical assets or inventory.

Debt Coverage by Assets: 981's debt is covered by short term assets (assets are 1.688120x debt).


Next Steps

Dividend

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


Dividend Yield vs Market

companyn/amarketbottom25%2.3%markettop25%6.3%industryaverage2.4%forecastin3Years0%

Current dividend yield vs market & industry


Stability and Growth of Payments

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

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

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

What is the CEO of Semiconductor Manufacturing International's salary, the management and board of directors tenure and is there insider trading?

2.3yrs

Average management tenure


CEO

Zhao Haijun (55yo)

2.4yrs

Tenure

US$1,538,000

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: Zhao has recently become CEO, making it difficult to compare their total compensation against companies of similar size in the Hong Kong market.

Compensation vs Earnings: Zhao's compensation has been consistent with company performance over the past year.


Management Age and Tenure

2.3yrs

Average Tenure

61yo

Average Age

Experienced Management: 981's management team is considered experienced (2.3 years average tenure).


Board Age and Tenure

5.4yrs

Average Tenure

57yo

Average Age

Experienced Board: 981's board of directors are considered experienced (5.4 years average tenure).


Insider Trading

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


Recent Insider Transactions

SellUS$107,231,78625 Sep 19
Tsinghua Holdings Corporation Limited
EntityCompany
Shares10,100,100
Max PriceUS$10.62
SellUS$287,00022 May 19
Zhao Haijun
EntityIndividual
Role
Co-Chief Executive Officer
Co-CEO & Executive Director
Shares35,000
Max PriceUS$8.20

Ownership Breakdown


Management Team

  • Sam Wang

    Corporate Vice President and President of Smic Americas

    • Tenure: 0yrs
  • Wenyi Zhang (72yo)

    Honorary Chairman and Advisor

    • Tenure: 4.6yrs
    • Compensation: US$610.00k
  • Wei Liu (61yo)

    Joint Company Secretary

    • Tenure: 2.3yrs
  • Gao Yonggang (54yo)

    CFO, Executive VP

    • Tenure: 10.3yrs
    • Compensation: US$608.00k
  • Mei Sheng Zhou (61yo)

    Executive VP of Technology Research & Development

    • Tenure: 2yrs
    • Compensation: US$620.00k
  • Zhao Haijun (55yo)

    Co-CEO & Executive Director

    • Tenure: 2.4yrs
    • Compensation: US$1.54m
  • Jason Li (55yo)

    Executive VP of Legal

    • Tenure: 0yrs
    • Compensation: US$428.00k
  • Zixue Zhou (62yo)

    Chairman of the Board

    • Tenure: 4.6yrs
    • Compensation: US$824.00k
  • Mong Song Liang (67yo)

    Co-CEO & Executive Director

    • Tenure: 2yrs
    • Compensation: US$478.00k
  • Tim Kuo

    Investor Relations Director

    • Tenure: 0yrs

Board Members

  • William Brown (60yo)

    Independent Non Executive Director

    • Tenure: 6.2yrs
    • Compensation: US$278.00k
  • Wenyi Zhang (72yo)

    Honorary Chairman and Advisor

    • Tenure: 4.6yrs
    • Compensation: US$610.00k
  • Jie Zhou (52yo)

    Non-Executive Director

    • Tenure: 10.8yrs
  • Gao Yonggang (54yo)

    CFO, Executive VP

    • Tenure: 10.3yrs
    • Compensation: US$608.00k
  • Shanzhi Chen (50yo)

    Non-Executive Director

    • Tenure: 10.3yrs
    • Compensation: US$339.00k
  • Zhao Haijun (55yo)

    Co-CEO & Executive Director

    • Tenure: 2.4yrs
    • Compensation: US$1.54m
  • Zixue Zhou (62yo)

    Chairman of the Board

    • Tenure: 4.6yrs
    • Compensation: US$824.00k
  • Kai Ren (47yo)

    Non-Executive Director

    • Tenure: 4.2yrs
    • Compensation: US$65.00k
  • Mong Song Liang (67yo)

    Co-CEO & Executive Director

    • Tenure: 2yrs
    • Compensation: US$478.00k
  • Anthony Fan (59yo)

    Independent Non-Executive Director

    • Tenure: 9.3yrs
    • Compensation: US$144.00k

Company Information

Semiconductor Manufacturing International Corporation's company bio, 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$48.969b
  • Shares outstanding: 5.05b
  • Website: https://www.smics.com

Number of Employees


Location

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

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
SMIC.YOTCPK (Pink Sheets LLC)ADR EACH REP 5 ORD USD0.004USUSDMar 2004
MKN1DB (Deutsche Boerse AG)ADR EACH REP 5 ORD USD0.004DEEURMar 2004
SIUI.FOTCPK (Pink Sheets LLC)YesOrdinary SharesUSUSDMar 2004
981SEHK (The Stock Exchange of Hong Kong Ltd.)YesOrdinary SharesHKHKDMar 2004
MKN2DB (Deutsche Boerse AG)YesOrdinary SharesDEEURMar 2004
981SHSC (Stock Exchange of Hong Kong Limited - Shanghai - Hong Kong Stock Connect)YesOrdinary SharesHKHKDMar 2004
981SZSC (The Stock Exchange of Hong Kong - Shenzhen - Hong Kong Stock Connect)YesOrdinary SharesHKHKDMar 2004
8DVBSGX (Singapore Exchange)2% CNV SUB PERP USD250000 'REGS'SGUSDOct 2018

Biography

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


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/10/21 12:42
End of Day Share Price2019/10/21 00:00
Earnings2019/06/30
Annual Earnings2018/12/31


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.