Movement Alert|SMIC Falls 3.36% in Regular Trading, Semiconductor Sector Pulls Back After Q2 Beat Already Priced In

Market Focus
Aug 19

On August 19, SMIC declined 3.36% in regular trading, trading at 73.25 HKD/share, with turnover of 323 million HKD. The stock retreated as the broader semiconductor sector experienced collective profit-taking following the company's strong Q2 earnings rally.

SMIC had previously reported Q2 revenue of 3.006 billion USD, marking the first time single-quarter revenue exceeded 30 billion USD, with net profit surging 261.7% year-over-year. Multiple brokerages raised target prices, driving a cumulative gain of nearly 10% over August 17-18. The sector-wide pullback saw HUA HONG GRACE fall 4.58%, Montage Technology decline 2.82%, and Iluvatar CoreX drop 5.65%, reflecting broad-based profit-taking.

Adding to cautious sentiment, JP Morgan maintained a Neutral rating despite raising its target to 78 HKD, warning that depreciation growth of approximately 30% in fiscal year 2026 exceeds revenue growth of 27%, potentially capping further margin expansion. Daiwa maintained a Sell rating with a target of only 40 HKD.

(The above content is based on publicly available market information, generated by a program or algorithm, and is intended solely as a stock movement alert. It does not constitute investment advice or a basis for trading decisions.)

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