SMIC (00981) fell nearly 4% following the release of its financial results. As of the latest update, the stock was down 3.77% to HK$68.85, with a turnover of HK$2.943 billion. The company reported fourth-quarter 2025 revenue of US$2.489 billion, up 12.8% year-on-year and 4.5% quarter-on-quarter. Profit attributable to equity holders reached US$173 million, increasing 60.7% from a year earlier but declining 9.9% compared to the previous quarter.

Looking ahead to 2026, SMIC provided first-quarter guidance, expecting revenue to remain flat sequentially, with gross margin projected between 18% and 20%. Assuming no significant changes in the external environment, the company’s full-year 2026 guidance indicates revenue growth above the industry average and capital expenditure roughly in line with 2025 levels.

Goldman Sachs noted in a research report that management's first-quarter revenue guidance—flat quarter-on-quarter—was broadly consistent with the bank’s forecast of 2% growth and market expectations. However, the gross margin guidance of 18%–20% for the first quarter was slightly below Goldman Sachs’ estimate of 21.7% and the market consensus of 20.9%. For the full year, SMIC’s management expects revenue growth to exceed the industry average and capital expenditure to remain stable year-on-year. Goldman Sachs views the guidance as having potential upside.