Abstract: After the Hong Kong stock market on Thursday, SMIC announced its results for the fourth quarter of 2020, with revenue of US$981 million, up 16.9% year on year and down 9.4% month on month. Against the backdrop of a boom in the industry as a whole, the revenue of peers TSMC and UMC continued to reach new highs, but SMIC's revenue declined. Is there any hope for SMIC?
On February 4, after the Hong Kong stock market, SMIC announced its results for the fourth quarter of 2020: revenue of US$981 million, up 16.9% year on year, down 9.4% month on month; net profit of US$223 million, up 2 times year on year, down 13.2% month on month.
It is worth noting that SMIC is an AH listed stock. The financial report released on the Shanghai Stock Exchange shows Q4 revenue: revenue of 6.671 billion yuan, up 10.3% year on year; net profit of 1,252 billion yuan, up 93.5% year on year.
The difference in revenue growth data for the same company and the same quarter is 6 percentage points. The speculation is mainly due to the recent continuous depreciation of the US dollar. The following mainly focuses on financial reports released by the Hong Kong Stock Exchange to analyze SMIC's Q4 results.
SMIC's Q4 is a pessimistic performance
SMIC investors are looking forward to SMIC's Q4 earnings report: Q4 global wafer production capacity continues to be scarce, and peers TSMC and UMC are calling for price increases. In this context, will these businesses quickly “spill out” to SMIC, and as a result, SMIC's Q4 revenue “blow-out” will grow in the same “blowout” manner.
But expectations are sexy; reality is skinny. SMIC's revenue loop...