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

Mediocre balance sheet with moderate growth potential.


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

6.6%

SEHK:981

6.6%

HK Semiconductor

1.9%

HK Market


1 Year Return

1.7%

SEHK:981

12.6%

HK Semiconductor

-10.5%

HK Market

981 underperformed the Semiconductor industry which returned 12.6% over the past year.

981 outperformed the Market in Hong Kong which returned -10.5% over the past year.


Share holder returns

981IndustryMarket
7 Day6.6%6.6%1.9%
30 Day-2.2%0.5%-7.1%
90 Day5.8%6.5%-4.5%
1 Year1.7%1.7%14.1%12.6%-7.3%-10.5%
3 Year6.1%6.1%17.1%10.7%15.1%3.7%
5 Year22.1%22.1%-32.7%-37.8%9.9%-8.3%

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 based on future cash flows and its price relative to the stock market?

73.13x

Price to Earnings (PE) ratio


Intrinsic Value Based on Future Cash Flows

Unable to calculate intrinsic value for Semiconductor Manufacturing International to establish if it is available at moderate discount.

Unable to calculate intrinsic value for Semiconductor Manufacturing International to establish if it is available at substantial discount.


Price Based on Earnings

Semiconductor Manufacturing International is overvalued based on earnings compared to the HK Semiconductor industry average.

Semiconductor Manufacturing International is overvalued based on earnings compared to the Hong Kong market.


Price Based on Expected Growth

Semiconductor Manufacturing International is poor value based on expected growth next year.


Price Based on Value of Assets

Semiconductor Manufacturing International is good value based on assets compared to the HK Semiconductor industry average.


Next Steps

Future Growth

How is Semiconductor Manufacturing International expected to perform in the next 1 to 3 years based on estimates from 22 analysts?

30.6%

Forecasted annual earnings growth


Earnings and Revenue Growth Estimates


Future Annual Growth Analysis

Semiconductor Manufacturing International's revenue is expected to grow by 10.5% yearly, however this is not considered high growth (20% yearly).

Semiconductor Manufacturing International's earnings are expected to grow significantly at over 20% yearly.

Semiconductor Manufacturing International's revenue growth is positive but not above the Hong Kong market average.

Semiconductor Manufacturing International's earnings growth is expected to exceed the Hong Kong market average.

Semiconductor Manufacturing International's earnings growth is expected to exceed the low risk savings rate of 2%.


Earnings per Share Growth Estimates


Future Return on Equity

Semiconductor Manufacturing International is not expected to efficiently use shareholders’ funds in the future (Return on Equity less than 20%).


Next Steps

Past Performance

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

-5.7%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Semiconductor Manufacturing International's year on year earnings growth rate was negative over the past 5 years and the most recent earnings are below average.

Semiconductor Manufacturing International's 1-year earnings growth is negative, it can't be compared to the 5-year average.

Semiconductor Manufacturing International's 1-year earnings growth is negative, it can't be compared to the HK Semiconductor industry average.


Return on Equity

Semiconductor Manufacturing International has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).


Return on Assets

Semiconductor Manufacturing International used its assets less efficiently than the HK Semiconductor industry average last year based on Return on Assets.


Return on Capital Employed

It is difficult to establish if Semiconductor Manufacturing International improved its use of capital last year versus 3 years ago (Return on Capital Employed) as it is currently loss-making.


Next Steps

Financial Health

How is Semiconductor Manufacturing International's financial position?


Financial Position Analysis

Semiconductor Manufacturing International is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.

Semiconductor Manufacturing International's cash and other short term assets cover its long term commitments.


Debt to Equity History and Analysis

Semiconductor Manufacturing International's level of debt (41.3%) compared to net worth is high (greater than 40%).

The level of debt compared to net worth has increased over the past 5 years (39.7% vs 41.3% today).

Debt is well covered by operating cash flow (23.9%, greater than 20% of total debt).

Unable to confirm if the interest payments on Semiconductor Manufacturing International's debt are well covered by earnings due to lack of past financial data.


Balance Sheet

High level of physical assets or inventory.

Debt is covered by short term assets, assets are 1.7x debt.


Next Steps

Dividend

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


Dividend Yield and Payments Analysis

Unable to evaluate Semiconductor Manufacturing International's dividend yield against the bottom 25% of dividend payers as the company has not reported any payouts.

Unable to evaluate Semiconductor Manufacturing International's dividend against the top 25% market benchmark as the company has not reported any payouts.

Unable to perform a dividend volatility check as Semiconductor Manufacturing International has not reported any payouts.

Unable to verify if Semiconductor Manufacturing International's dividend has been increasing as the company has not reported any payouts.


Current Payout to Shareholders

Unable to calculate sustainability of dividends as Semiconductor Manufacturing International has not reported any payouts.


Future Payout to Shareholders

No need to calculate the sustainability of Semiconductor Manufacturing International's dividends in 3 years as they are not expected to pay a notable one for Hong Kong.


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?

2.2yrs

Average management tenure


CEO

Zhao Haijun (55yo)

2.3yrs

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

Zhao's remuneration is higher than average for companies of similar size in Hong Kong.

Zhao's compensation has been consistent with company performance over the past year, both up more than 20%.


Management Age and Tenure

2.2yrs

Average Tenure

61yo

Average Age

The tenure for the Semiconductor Manufacturing International management team is about average.


Board Age and Tenure

5.2yrs

Average Tenure

57yo

Average Age

The tenure for the Semiconductor Manufacturing International board of directors is about average.


Insider Trading

No 3 month open market individual insider trading information.


Recent Insider Transactions

SellUS$287,00022 May 19
Zhao Haijun
EntityIndividual
Role
Co-Chief Executive Officer
Co-CEO & Executive Director
Shares35,000
Max PriceUS$8.20
BuyUS$607,634,77130 Aug 18
Huaxin Investment Management Co., Ltd.
EntityCompany
Shares57,054,901
Max PriceUS$10.65

Ownership Breakdown


Management Team

  • Sam Wang

    Corporate Vice President and President of Smic Americas

    • Tenure: 0.0yrs
  • Wenyi Zhang (72yo)

    Honorary Chairman and Advisor

    • Tenure: 4.4yrs
    • Compensation: US$610.00k
  • Wei Liu (61yo)

    Joint Company Secretary

    • Tenure: 2.1yrs
  • Gao Yonggang (54yo)

    CFO, Executive VP

    • Tenure: 10.2yrs
    • Compensation: US$608.00k
  • Mei Sheng Zhou (61yo)

    Executive VP of Technology Research & Development

    • Tenure: 1.8yrs
    • Compensation: US$620.00k
  • Zhao Haijun (55yo)

    Co-CEO & Executive Director

    • Tenure: 2.3yrs
    • Compensation: US$1.54m
  • Jason Li (55yo)

    Executive VP of Legal

    • Tenure: 0.0yrs
    • Compensation: US$428.00k
  • Zixue Zhou (62yo)

    Chairman of the Board

    • Tenure: 4.4yrs
    • Compensation: US$824.00k
  • Mong Song Liang (67yo)

    Co-CEO & Executive Director

    • Tenure: 1.8yrs
    • Compensation: US$478.00k
  • Tim Kuo

    Investor Relations Director

    • Tenure: 0.0yrs

Board Members

  • Wenyi Zhang (72yo)

    Honorary Chairman and Advisor

    • Tenure: 4.4yrs
    • Compensation: US$610.00k
  • Jie Zhou (52yo)

    Non-Executive Director

    • Tenure: 10.6yrs
  • Gao Yonggang (54yo)

    CFO, Executive VP

    • Tenure: 10.2yrs
    • Compensation: US$608.00k
  • Shanzhi Chen (50yo)

    Non-Executive Director

    • Tenure: 10.2yrs
    • Compensation: US$339.00k
  • Zhao Haijun (55yo)

    Co-CEO & Executive Director

    • Tenure: 2.3yrs
    • Compensation: US$1.54m
  • William Brown (60yo)

    Independent Non Executive Director

    • Tenure: 6.0yrs
    • Compensation: US$97.00k
  • Zixue Zhou (62yo)

    Chairman of the Board

    • Tenure: 4.4yrs
    • Compensation: US$824.00k
  • Kai Ren (47yo)

    Non-Executive Director

    • Tenure: 4.0yrs
    • Compensation: US$65.00k
  • Mong Song Liang (67yo)

    Co-CEO & Executive Director

    • Tenure: 1.8yrs
    • Compensation: US$478.00k
  • Anthony Fan (59yo)

    Independent Non-Executive Director

    • Tenure: 9.1yrs
    • 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$45.011b
  • 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)SPONSORED ADSUSUSDMar 2004
MKN1DB (Deutsche Boerse AG)SPONSORED ADSDEEURMar 2004
SMI NBMV (Bolsa Mexicana de Valores)SPONSORED ADSMXMXNMar 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 Analysis2019/08/24 12:40
End of Day Share Price2019/08/23 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.