Semiconductor Manufacturing International Corporation

SZSC:981 Stock Report

Market Cap: HK$361.1b

Semiconductor Manufacturing International Valuation

Is 981 undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

2/6

Valuation Score 2/6

  • Below Fair Value

  • Significantly Below Fair Value

  • Price-To-Earnings vs Peers

  • Price-To-Earnings vs Industry

  • Price-To-Earnings vs Fair Ratio

  • Analyst Forecast

Share Price vs Fair Value

What is the Fair Price of 981 when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: 981 (HK$26.4) is trading below our estimate of fair value (HK$120.29)

Significantly Below Fair Value: 981 is trading below fair value by more than 20%.

Key Valuation Metric

Which metric is best to use when looking at relative valuation for 981?

Key metric: As 981 is profitable we use its Price-To-Earnings Ratio for relative valuation analysis.

The above table shows the Price to Earnings ratio for 981. This is calculated by dividing 981's market cap by their current earnings.
What is 981's PE Ratio?
PE Ratio48.3x
EarningsUS$559.84m
Market CapUS$46.38b

Price to Earnings Ratio vs Peers

How does 981's PE Ratio compare to its peers?

The above table shows the PE ratio for 981 vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PEEstimated GrowthMarket Cap
Peer Average20.1x
1347 Hua Hong Semiconductor
39x31.0%HK$48.6b
1385 Shanghai Fudan Microelectronics Group
22.8x34.1%HK$28.2b
85 China Electronics Huada Technology
6xn/aHK$2.6b
2149 BaTeLab
12.7x35.6%HK$1.8b
981 Semiconductor Manufacturing International
48.3x25.0%HK$361.1b

Price-To-Earnings vs Peers: 981 is expensive based on its Price-To-Earnings Ratio (48.3x) compared to the peer average (20.1x).

Price to Earnings Ratio vs Industry

How does 981's PE Ratio compare vs other companies in the Asian Semiconductor Industry?

12 CompaniesPrice / EarningsEstimated GrowthMarket Cap
981 48.3xIndustry Avg. 32.2xNo. of Companies78PE020406080100+
12 CompaniesEstimated GrowthMarket Cap
No more companies

Price-To-Earnings vs Industry: 981 is expensive based on its Price-To-Earnings Ratio (48.3x) compared to the Asian Semiconductor industry average (32.2x).

Price to Earnings Ratio vs Fair Ratio

What is 981's PE Ratio compared to its Fair PE Ratio? This is the expected PE Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

981 PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio48.3x
Fair PE Ratio30.5x

Price-To-Earnings vs Fair Ratio: 981 is expensive based on its Price-To-Earnings Ratio (48.3x) compared to the estimated Fair Price-To-Earnings Ratio (30.5x).

Analyst Price Targets

What is the analyst 12-month forecast and do we have any statistical confidence in the consensus price target?

The above table shows the analyst 981 forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
CurrentHK$26.40
HK$25.32
-4.1%
27.1%HK$37.03HK$13.01n/a23
Nov ’25HK$25.75
HK$19.34
-24.9%
20.8%HK$26.92HK$10.76n/a23
Oct ’25HK$20.85
HK$19.25
-7.7%
20.0%HK$26.98HK$10.78n/a23
Sep ’25HK$17.08
HK$19.11
+11.9%
20.9%HK$26.99HK$10.79n/a24
Aug ’25HK$17.06
HK$17.77
+4.2%
20.3%HK$23.32HK$10.79n/a21
Jul ’25HK$17.12
HK$18.46
+7.8%
22.3%HK$25.90HK$10.79n/a23
Jun ’25HK$16.54
HK$18.64
+12.7%
22.1%HK$25.92HK$10.80n/a24
May ’25HK$15.52
HK$18.05
+16.3%
23.6%HK$25.96HK$10.80n/a24
Apr ’25HK$15.16
HK$18.05
+19.1%
23.6%HK$25.96HK$10.80n/a24
Mar ’25HK$17.04
HK$18.55
+8.9%
25.9%HK$29.99HK$10.80n/a25
Feb ’25HK$14.28
HK$21.85
+53.0%
20.6%HK$29.99HK$14.01n/a25
Jan ’25HK$19.86
HK$21.96
+10.6%
21.8%HK$29.94HK$13.90n/a24
Dec ’24HK$21.25
HK$21.94
+3.2%
22.3%HK$29.95HK$13.90n/a23
Nov ’24HK$24.00
HK$20.51
-14.6%
22.7%HK$30.03HK$13.93HK$25.7521
Oct ’24HK$20.05
HK$20.36
+1.6%
22.5%HK$30.02HK$13.93HK$20.8522
Sep ’24HK$19.70
HK$20.27
+2.9%
22.6%HK$30.02HK$13.93HK$17.0823
Aug ’24HK$19.26
HK$20.47
+6.3%
22.2%HK$29.94HK$13.91HK$17.0622
Jul ’24HK$20.40
HK$20.09
-1.5%
20.8%HK$29.97HK$13.95HK$17.1221
Jun ’24HK$19.90
HK$20.08
+0.9%
20.8%HK$29.95HK$13.94HK$16.5421
May ’24HK$22.55
HK$18.54
-17.8%
18.4%HK$25.80HK$13.97HK$15.5221
Apr ’24HK$18.60
HK$18.01
-3.2%
15.9%HK$25.00HK$13.97HK$15.1621
Mar ’24HK$16.40
HK$17.66
+7.7%
15.7%HK$24.98HK$13.52HK$17.0422
Feb ’24HK$17.72
HK$18.83
+6.3%
19.5%HK$28.87HK$13.49HK$14.2822
Jan ’24HK$16.72
HK$18.61
+11.3%
19.7%HK$28.66HK$13.39HK$19.8622
Dec ’23HK$16.66
HK$18.71
+12.3%
19.6%HK$28.81HK$13.46HK$21.2522
Nov ’23HK$16.82
HK$20.23
+20.3%
22.0%HK$33.05HK$13.97HK$24.0022

Analyst Forecast: Target price is lower than the current share price.

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