SMIC(688981) 上海证券·2025-04-21 05:23Investment Rating - The report assigns a "Buy" rating for the company [1]. Core Views - The company is a leading integrated circuit foundry with a global presence, providing 8-inch and 12-inch wafer foundry and technology services. It has established partnerships with major design service providers and has a strong marketing presence in the US, Europe, Japan, and Taiwan [4][16]. - The company's revenue and profit growth are expected to accelerate due to the recovery in the semiconductor industry, driven by demand from artificial intelligence, industrial automation, and smart vehicles. The ownership structure is diverse, with significant interest from major capital funds [4][5][6]. Summary by Sections 1. Company Overview - The company is a world-class integrated circuit foundry, headquartered in Shanghai, with a global operational footprint [16]. - It has experienced significant revenue growth, with a compound annual growth rate of 15.26% from 2017 to 2024, increasing from 21.39 billion yuan to 57.796 billion yuan [20]. 2. Industry Perspective - The semiconductor industry is characterized by high barriers to entry, rapid growth, and a business model that aligns with market demands. The company benefits from economies of scale and technological advantages [5][36]. - The industry is experiencing a resurgence, with a projected global semiconductor market shortage for 40nm and above chips in 2025, which is expected to boost the company's performance [20][23]. 3. Financial Forecasts - Revenue projections for 2025-2027 are 70.652 billion yuan, 78.639 billion yuan, and 87.584 billion yuan, representing year-on-year growth rates of 22.24%, 11.30%, and 11.38% respectively. Net profit is expected to grow significantly during the same period [6][8].