CLSA has issued a research report indicating a reduction in its earnings estimates for Semiconductor Manufacturing International Corporation (00981) by 14% for 2026 and 11% for 2027. However, the firm maintains its H-share target price of HK$93.3 and an "Outperform" rating. For the company's A-shares (688981.SH), CLSA continues to assign a target price of 152 yuan and an "Outperform" rating. SMIC's fourth-quarter 2023 results and its first-quarter guidance were largely in line with the institution's expectations. Despite constraints from memory chip shortages, demand for consumer electronics remains robust. The company anticipates the memory shortage situation will ease within 9 to 12 months. SMIC's capital expenditure for 2026 is projected to remain at $8.1 billion, while depreciation expenses are expected to increase by 30% year-over-year.