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<Research>Citi Raises TPs for SMIC/ HUA HONG SEMI to HKD75/ HKD115
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According to a Citi report, the 4Q25 financial results of SMIC (00981.HK) and HUA HONG SEMI (01347.HK) were basically in line with company guidance, although the 1Q26 outlook was slightly below expectations.

SMIC (00981.HK) and HUA HONG SEMI anticipate that the localization demand for semiconductors in China and AI-driven opportunities will support growth prospects, while increased depreciation and intensified competition will heap pressure on profit margins.

Citi has lifted SMIC's target price from HKD53 to HKD75, with a Neutral rating. HUA HONG SEMI's target price has also increased from HKD105 to HKD115, with a Buy rating.

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