Semiconductor Manufacturing International Corporation

SZSC:981 Stock Report

Market Cap: HK$369.1b

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$28.3) is trading below our estimate of fair value (HK$124.58)

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 Ratio51.9x
EarningsUS$559.84m
Market CapUS$47.49b

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 Average20.3x
1347 Hua Hong Semiconductor
40x31.0%HK$49.5b
1385 Shanghai Fudan Microelectronics Group
24.1x34.1%HK$28.3b
85 China Electronics Huada Technology
5.8xn/aHK$2.6b
2149 BaTeLab
11.5x35.6%HK$1.6b
981 Semiconductor Manufacturing International
51.9x24.4%HK$369.1b

Price-To-Earnings vs Peers: 981 is expensive based on its Price-To-Earnings Ratio (51.9x) compared to the peer average (20.3x).

Price to Earnings Ratio vs Industry

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

10 CompaniesPrice / EarningsEstimated GrowthMarket Cap
981 51.9xIndustry Avg. 32.5xNo. of Companies80PE020406080100+
10 CompaniesEstimated GrowthMarket Cap
No more companies

Price-To-Earnings vs Industry: 981 is expensive based on its Price-To-Earnings Ratio (51.9x) compared to the Asian Semiconductor industry average (32.7x).

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 Ratio51.9x
Fair PE Ratio30.6x

Price-To-Earnings vs Fair Ratio: 981 is expensive based on its Price-To-Earnings Ratio (51.9x) compared to the estimated Fair Price-To-Earnings Ratio (30.6x).

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$28.30
HK$25.37
-10.4%
27.3%HK$36.98HK$12.99n/a22
Dec ’25HK$26.00
HK$25.68
-1.2%
26.8%HK$37.04HK$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$13.90HK$26.0023
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

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

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Company Analysis and Financial Data Status

DataLast Updated (UTC time)
Company Analysis2024/12/20 06:07
End of Day Share Price 2024/12/20 00:00
Earnings2024/09/30
Annual Earnings2023/12/31

Data Sources

The data used in our company analysis is from S&P Global Market Intelligence LLC. The following data is used in our analysis model to generate this report. Data is normalised which can introduce a delay from the source being available.

PackageDataTimeframeExample US Source *
Company Financials10 years
  • Income statement
  • Cash flow statement
  • Balance sheet
Analyst Consensus Estimates+3 years
  • Forecast financials
  • Analyst price targets
Market Prices30 years
  • Stock prices
  • Dividends, Splits and Actions
Ownership10 years
  • Top shareholders
  • Insider trading
Management10 years
  • Leadership team
  • Board of directors
Key Developments10 years
  • Company announcements

* example for US securities, for non-US equivalent regulatory forms and sources are used.

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.

Analysis Model and Snowflake

Details of the analysis model used to generate this report is available on our Github page, we also have guides on how to use our reports and tutorials on Youtube.

Learn about the world class team who designed and built the Simply Wall St analysis model.

Industry and Sector Metrics

Our industry and section metrics are calculated every 6 hours by Simply Wall St, details of our process are available on .

Analyst Sources

Semiconductor Manufacturing International Corporation is covered by 55 analysts. 24 of those analysts submitted the estimates of revenue or earnings used as inputs to our report. Analysts submissions are updated throughout the day.

AnalystInstitution
Ge BaiABCI Securities Company Limited
Andrew LuBarclays
Szeho NgBNP Paribas Securities (Asia)