# Semiconductor Manufacturing International (0981.HK)

Canonical: https://gigainvestors.com/s/0981.HK

Analysis as of: 2026-10-16T07:33:51.994Z. Financial observations: FY2004–FY2025.

Listing currency: HKD. Reporting currency: USD.

## Verdict

Not a wonderful business

Quality tests for Buy: not passed (profit record: fail; earnings resilience is evidence only). Published buy qualification: no.

Share price: HKD 52.15 per share; close as of 2026-10-15.

Estimated value: low HKD 16.91 per share, central HKD 20.52 per share, high HKD 22.62 per share. Buy at or below the central value HKD 20.52 per share. Valuation as of 2026-10-16T07:33:51.994Z; scenarios are not confidence intervals.

Expected annual return: 5.0% at the stated quote. About 5.0% a year at today's price (required return 10.0%). required return 10.0% a year (10% floor; HK 10-year bond 4.0% + 4 points).

## Checklist

### understandable: fail

- 2 revenue declines in the last 10 years (informational)

- operating margin variation exceeds 0.35

- Financial history: 10 years

- Years with declining revenue: 2

- Years with a net loss: 0

- Operating margin variation: 0.81×

Chart: Operating margin; fiscal year observations.

- FY2016: 0.12×

- FY2017: 0.04×

- FY2018: 0.00×

- FY2019: 0.04×

- FY2020: 0.08×

- FY2021: 0.26×

- FY2022: 0.25×

- FY2023: 0.06×

- FY2024: 0.06×

- FY2025: 0.12×

### moat: fail

- ROIC median below threshold

- ROIC worst years below threshold (more than 1 bad year allowed)

- ROIC, median of available years: 2.6%

- ROIC, second-lowest year: 1.6%

- Typical minus recent gross margin: 3.6 pp

- Typical gross margin (annual median): 22.9%

- Recent gross margin (lower of latest and 3-year median): 19.3%

- Years with nonpositive capital: 0

- Capital spending / revenue: 87.8%

- ROIC including acquisitions, ten-year median: -8.1%

Chart: ROIC excluding acquisitions; fiscal year observations.

- FY2016: 6.8%

- FY2017: 2.0%

- FY2018: 0.2%

- FY2019: 2.0%

- FY2020: 3.3%

- FY2021: 11.8%

- FY2022: 11.8%

- FY2023: 1.6%

- FY2024: 1.9%

- FY2025: 4.3%

### economics: fail

- owner earnings cash conversion below threshold

- incremental invested capital return below threshold

- working capital as a share of revenue rose more than 10pp and ends positive

- Owner earnings / net income, 5-yr: 0.23×

- Cash conversion uses consolidated totals: No

- Owner earnings, five-year total: $1.3B

- Net income, five-year total: $5.6B

- Return on incremental invested capital: 2.4%

- Working capital / revenue, annual change: 2.9 pp

- Working capital / revenue, change between three-year averages: 17.9 pp

- Working capital / revenue, final three-year average: 31.2%

Chart: Annual owner cash / profit; fiscal year observations.

- FY2021: 0.98×

- FY2022: 0.99×

- FY2023: -3.43×

- FY2024: 0.99×

- FY2025: 0.61×

### management: pass

- Historical market-dollar context (not the management verdict): 2016 to 2025 (9 years)

- buybacks unrelated to price (informational)

- ROIC first 3 years vs last 3 years: 2.0% vs 1.9%

- Per-share earnings: 0.06 to 0.09 (three-year endpoint medians)

- Management verdict uses per-share economic progress: Yes

- Ordinary dilution, 10-year annual growth: 5.8%

- Ordinary dilution, 5-year annual growth: 0.8%

- Market cap gain: $65B

- Cumulative retained earnings: $7.3B

- Diluted shares, 10-year annual growth: 5.8%

- Diluted shares, 5-year annual growth: 0.8%

- $1 test, starting fiscal year: FY2016

- $1 test, ending fiscal year: FY2025

- Per-share value growth: 5.5%

- Per-share value change: $0.03

- Per-share value, starting three-year median: $0.06

- Per-share value, ending three-year median: $0.09

- Buybacks concentrated in cheaper years (correlation): -1.00

- Average buyback yield: 0.3%

- Buyback history: 2 years

- Debt-funded buybacks: No

- Acquisition spending: $544M

- Cumulative net income, 10 years: $7.2B

- ROIC, first three-year median: 2.0%

- ROIC, last three-year median: 1.9%

Chart: Earnings per share; fiscal year observations.

- FY2016: $0.07

- FY2017: $0.03

- FY2018: $0.03

- FY2019: $0.03

- FY2020: $0.09

- FY2021: $0.21

- FY2022: $0.23

- FY2023: $0.11

- FY2024: $0.06

- FY2025: $0.09

### accounting: pass

- latest-year receivables to sales index (DSRI) exceeds 1.465

- Sloan accruals: -5.1%

- Receivables to sales index (DSRI): 1.47×

- Restructuring years, last five: 0

- Stock compensation / operating cash flow: 0.8%

- Earnings backed by cash: Yes

- Operating cash / earnings: 4.95×

- Accounting red flags: 1

- Goodwill and intangibles / equity: 0.02×

Chart: Sloan accruals; fiscal year observations.

- FY2016: -5.9%

- FY2017: -7.6%

- FY2018: -4.6%

- FY2019: -5.2%

- FY2020: -3.0%

- FY2021: -3.6%

- FY2022: -8.1%

- FY2023: -5.1%

- FY2024: -5.5%

- FY2025: -5.1%

## Holders

## Price story

Down 42% since Jun 2026 · "China’s Top Chipmaker SMIC Warns Production Issues Hit Sales" (finance.yahoo.com, May 2025) · sales +16.2%

Story as of 2026-10-16T09:59:58.031Z; price observation 2026-10-15.

Price needs cash profits to grow 23.2% a year for ten years

- 2025-05-09: China’s Top Chipmaker SMIC Warns Production Issues Hit Sales ([finance.yahoo.com](https://finance.yahoo.com/news/china-top-chipmaker-smic-plunges-045132257.html))

- 2026-02-10: SMIC Earnings Top Expectations on Strong Chip Demand, but Outlook Cautious ([finance.yahoo.com](https://finance.yahoo.com/m/72f69474-6894-3bfd-8b04-a3601e562c77/smic-earnings-top.html))

### Sales · FY2024–2025

sales +16.2%; source https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/; observed 2026-10-16.

- FY2016: $2.9B 

- FY2017: $3.1B 

- FY2018: $3.4B 

- FY2019: $3.1B 

- FY2020: $3.9B 

- FY2021: $5.4B 

- FY2022: $7.3B 

- FY2023: $6.3B 

- FY2024: $8.0B 

- FY2025: $9.3B 

### Gross margin · FY2025

gross margin 21%; source https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/; observed 2026-10-16.

- FY2016: 29.2% 

- FY2017: 23.9% 

- FY2018: 22.2% 

- FY2019: 20.6% 

- FY2020: 23.6% 

- FY2021: 30.8% 

- FY2022: 38.0% 

- FY2023: 19.3% 

- FY2024: 18.0% 

- FY2025: 21.0% 

## Owner memo

Memo as of 2026-10-16T08:06:05.509Z.

### How it makes money

Operates in semiconductors; annual sales are USD 9.3 billion.

- Source: https://eodhd.com/api/fundamentals/0981.HK.json#2025-12-31 (filed 2026-10-16T07:33:51.994Z); FY2025: revenue 9326799000; grossProfit 1956599000; margin = grossProfit / revenue.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16); 0981.HK: Semiconductor Manufacturing International Corporation, an investment holding company, engages in the manufacture, testing, and sale of integrated circuits wafer and various compound semiconductors in the United States, China, and Eurasia. The company is also involved in the manufacturing, sale, and trading of semiconductor products; and research and development activities. In addition, it offers semiconductor foundry and technology services; supporting services comprising design and IP support, photomask manufacturing, etc.; development, design, and technical services related to integrated circuits; marketing related services; and private education services. Further, the company tests and sells self-produced products, and other services. Semiconductor Manufacturing International Corporation was incorporated in 2000 and is headquartered in Shanghai, China.

### Why customers stay

Margins ranged from 18% to 21% during 2023–25; it earns 2.6% on its capital.

- Source: https://eodhd.com/api/fundamentals/0981.HK.json#2023-12-31 (filed 2026-10-16T07:33:51.994Z); FY2023: grossProfit / revenue = 19.3%.

- Source: https://eodhd.com/api/fundamentals/0981.HK.json#2024-12-31 (filed 2026-10-16T07:33:51.994Z); FY2024: grossProfit / revenue = 18%.

- Source: https://eodhd.com/api/fundamentals/0981.HK.json#2025-12-31 (filed 2026-10-16T07:33:51.994Z); FY2025: grossProfit / revenue = 21%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:33:51.994Z); 10-year return on capital observations [[2016,0.06764543411367502],[2017,0.02042473631655274],[2018,0.00219406201617548],[2019,0.0203367553755137],[2020,0.032502472975919676],[2021,0.11758180809256184],[2022,0.11823489947790033],[2023,0.016180260087426332],[2024,0.018836411609600406],[2025,0.04296163947832852]]; median 0.02646360464623621. ROIC follows the displayed moat series; financial companies use return on tangible equity.

### Where the cash goes

Earns 2.4% on new investment; paid dividends in 5 of 10 years.

- Source: https://eodhd.com/api/fundamentals/0981.HK.json#2021-12-31 (filed 2026-10-16T07:33:51.994Z); FY2021: growth capex 2471103000; upkeep 1869302000; owner earnings 1659758200. Growth capex / owner earnings = 1.488833132440617.

- Source: https://eodhd.com/api/fundamentals/0981.HK.json#2022-12-31 (filed 2026-10-16T07:33:51.994Z); FY2022: growth capex 3989185000; upkeep 2271361000; cash acquisitions 47319000; owner earnings 1799824295.09163. Growth capex plus acquisitions / owner earnings = 2.242721142840501.

- Source: https://eodhd.com/api/fundamentals/0981.HK.json#2024-12-31 (filed 2026-10-16T07:33:51.994Z); FY2024: growth capex 4446828000; upkeep 3223063000; cash acquisitions 0; owner earnings 489200180.3798119. Growth capex plus acquisitions / owner earnings = 9.089996648299499.

- Source: https://eodhd.com/api/fundamentals/0981.HK.json#2025-12-31 (filed 2026-10-16T07:33:51.994Z); FY2025: growth capex 4182381735.9427896; upkeep 4169805925.0572104; cash acquisitions 140121000; owner earnings 416858187.31740963. Growth capex plus acquisitions / owner earnings = 10.369240349480032.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:33:51.994Z); Incremental return on capital 0.023928962605792952, from the economics test's unchanged annual inputs.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:33:51.994Z); Dividend observations: [[2016,6300000],[2017,6300000],[2018,6300000],[2019,11300000],[2020,8000000],[2021,0],[2022,0],[2023,0],[2024,0],[2025,0]]. Zero only counted when supported by a complete cash-flow statement.

### Are managers owners

Insiders own 18% of the company.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16); 0981.HK SharesStats.PercentInsiders = 18.041 percentage points; cache date 2026-10-16.

### What the price says

The price assumes cash profits grow 23.2% yearly over ten years.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:33:51.994Z); Ten-year compound average after fade. Initial solved rate 0.32483640251802315. Price 52.15; FX 7.84744565643883; discount 0.1; same standard ten-year fade to terminal 0.03. FY2015 owner earnings/share -0.01696911956033019 → FY2025 0.052048697498219526. Closing-price date 2026-10-15.

## Monthly share-price history (HKD per share)

- 2016-10: HKD 9.40 per share

- 2016-11: HKD 10.50 per share

- 2016-12: HKD 12.18 per share

- 2017-01: HKD 10.70 per share

- 2017-02: HKD 10.10 per share

- 2017-03: HKD 9.62 per share

- 2017-04: HKD 9.86 per share

- 2017-05: HKD 8.21 per share

- 2017-06: HKD 9.05 per share

- 2017-07: HKD 8.60 per share

- 2017-08: HKD 7.36 per share

- 2017-09: HKD 8.82 per share

- 2017-10: HKD 11.96 per share

- 2017-11: HKD 10.90 per share

- 2017-12: HKD 13.52 per share

- 2018-01: HKD 11.34 per share

- 2018-02: HKD 10.54 per share

- 2018-03: HKD 10.26 per share

- 2018-04: HKD 10.12 per share

- 2018-05: HKD 10.26 per share

- 2018-06: HKD 10.20 per share

- 2018-07: HKD 9.48 per share

- 2018-08: HKD 9.26 per share

- 2018-09: HKD 8.44 per share

- 2018-10: HKD 6.47 per share

- 2018-11: HKD 7.19 per share

- 2018-12: HKD 6.85 per share

- 2019-01: HKD 7.39 per share

- 2019-02: HKD 7.95 per share

- 2019-03: HKD 7.94 per share

- 2019-04: HKD 8.39 per share

- 2019-05: HKD 9.43 per share

- 2019-06: HKD 8.70 per share

- 2019-07: HKD 9.29 per share

- 2019-08: HKD 8.62 per share

- 2019-09: HKD 9.80 per share

- 2019-10: HKD 9.99 per share

- 2019-11: HKD 9.98 per share

- 2019-12: HKD 11.94 per share

- 2020-01: HKD 14.30 per share

- 2020-02: HKD 15.10 per share

- 2020-03: HKD 12.20 per share

- 2020-04: HKD 14.82 per share

- 2020-05: HKD 16.84 per share

- 2020-06: HKD 27.00 per share

- 2020-07: HKD 29.85 per share

- 2020-08: HKD 24.90 per share

- 2020-09: HKD 18.12 per share

- 2020-10: HKD 22.75 per share

- 2020-11: HKD 21.65 per share

- 2020-12: HKD 22.30 per share

- 2021-01: HKD 26.45 per share

- 2021-02: HKD 25.05 per share

- 2021-03: HKD 24.70 per share

- 2021-04: HKD 25.05 per share

- 2021-05: HKD 24.50 per share

- 2021-06: HKD 23.90 per share

- 2021-07: HKD 27.15 per share

- 2021-08: HKD 23.80 per share

- 2021-09: HKD 22.05 per share

- 2021-10: HKD 22.00 per share

- 2021-11: HKD 21.45 per share

- 2021-12: HKD 18.66 per share

- 2022-01: HKD 18.62 per share

- 2022-02: HKD 19.60 per share

- 2022-03: HKD 17.14 per share

- 2022-04: HKD 16.42 per share

- 2022-05: HKD 17.10 per share

- 2022-06: HKD 18.18 per share

- 2022-07: HKD 16.38 per share

- 2022-08: HKD 15.80 per share

- 2022-09: HKD 16.00 per share

- 2022-10: HKD 16.40 per share

- 2022-11: HKD 16.98 per share

- 2022-12: HKD 16.72 per share

- 2023-01: HKD 17.24 per share

- 2023-02: HKD 16.04 per share

- 2023-03: HKD 18.60 per share

- 2023-04: HKD 22.55 per share

- 2023-05: HKD 20.30 per share

- 2023-06: HKD 20.40 per share

- 2023-07: HKD 19.68 per share

- 2023-08: HKD 19.70 per share

- 2023-09: HKD 20.05 per share

- 2023-10: HKD 23.30 per share

- 2023-11: HKD 22.15 per share

- 2023-12: HKD 19.86 per share

- 2024-01: HKD 14.08 per share

- 2024-02: HKD 16.78 per share

- 2024-03: HKD 15.16 per share

- 2024-04: HKD 15.52 per share

- 2024-05: HKD 16.54 per share

- 2024-06: HKD 17.12 per share

- 2024-07: HKD 17.00 per share

- 2024-08: HKD 17.08 per share

- 2024-09: HKD 20.85 per share

- 2024-10: HKD 27.05 per share

- 2024-11: HKD 26.00 per share

- 2024-12: HKD 31.70 per share

- 2025-01: HKD 38.00 per share

- 2025-02: HKD 53.60 per share

- 2025-03: HKD 46.10 per share

- 2025-04: HKD 46.90 per share

- 2025-05: HKD 40.55 per share

- 2025-06: HKD 44.70 per share

- 2025-07: HKD 51.10 per share

- 2025-08: HKD 60.70 per share

- 2025-09: HKD 79.55 per share

- 2025-10: HKD 75.00 per share

- 2025-11: HKD 68.80 per share

- 2025-12: HKD 71.35 per share

- 2026-01: HKD 75.40 per share

- 2026-02: HKD 68.00 per share

- 2026-03: HKD 50.70 per share

- 2026-04: HKD 70.90 per share

- 2026-05: HKD 81.60 per share

- 2026-06: HKD 89.40 per share

- 2026-07: HKD 63.25 per share

- 2026-08: HKD 70.75 per share

- 2026-09: HKD 60.65 per share

- 2026-10: HKD 52.15 per share

## Annual estimated value (HKD per share)

- FY2024: low HKD 13.22 per share, central HKD 15.30 per share, high HKD 16.71 per share

- FY2025: low HKD 14.55 per share, central HKD 17.79 per share, high HKD 19.68 per share

Historical values use today's bond yield for every fiscal year

Historical values use today's FX rate into trading currency for every fiscal year

Historical values use current restated fundamentals and current commodity classification; they are not point-in-time estimates

Prior published observations retained from 2026-10-15T06:39:37.382Z where newer inputs omit a numeric field or fiscal period.

## Sources

Estimates depend on assumptions and are not guarantees or investment advice. Underlying data remains subject to its source licenses; public reading does not grant bulk redistribution rights.