Semiconductor Manufacturing Up 5% on Improved Revenues

China's largest foundry, after its stock reached a 16 year high in Hong Kong this week, reported revenues of $839.4 million
Anthony RussoFeb 13,2020,18:45

The stock in Semiconductor Manufacturing International Corp. (HKEX: 0981; OTC: SMICY):  or SMIC soared 5% to $11.05 per American depositary share in early trading on Thursday in the U.S., after the company announced improved revenue and profit in its 4th quarter financials.
The Shanghai-based foundry and tech company said in a statement today that in the three months through December that its revenue reached $839.4 million, up 7% year-over-year. The global company attributed the growth in the quarter to its China business, which accounted for 65% of its revenue.
Gross profit in the 4th quarter was $199.4 million compared with $134.1 million in the same period in the preceding year.
In Hong Kong, since opening the year trading at $11.94 per share, SMIC’s stock has gone up significantly in the market. This week, its stock reached $17.80 per share, which marks the highest point since the year of its IPO in 2004. SMIC closed in Hong Kong on Thursday up nearly 7% at $17.28 per share.
Looking ahead, Zhao Haijun and Dr. Liang Mong Song, the co-chief executive officers said that currently, the company’s first quarter revenue appears to be better than its seasonal.
“In response to customers' market demand, a new round of capital expenditure plans will be deployed, and capacity will gradually expand. In terms of business strategy, we will continue to expand mature process offerings and maintain our leadership in certain segments, Haijun and Song said in a statement today.
They added, “In particular, demand for CMOS image sensors, power management, etc. remains strong. We are solidifying our fundamental capabilities on advanced technology, diversifying our customer engagement, and transitioning technology development into income generation”
Established in 2004, SMIC claims on its official website it is mainland China’s largest and most advanced foundry. SMIC has marketing and customer service offices in the U.S., Europe, Japan, Taiwan and China. It also has a representative office in Hong Kong.