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

Author: Anthony Russo   

The stock in Semiconductor Manufacturing International Corp. (HKEX: 0981; OTC: SMICY) jumped 5% to $11.05 per American depositary share in over-the-counter (OTC) markets early on Thursday in the U.S. after the company announced improved revenues and profit in its fourth quarter financials.
The Shanghai-based chip foundry said in a statement today that in the three months through December its revenues reached $839.4 million, up 7% year-over-year. The global company attributed the growth to its China business, which accounted for 65% of its revenues.
Gross profit in the fourth 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 HK$11.94 per share, SMIC has seen its stock rise significantly as of late. This week, its stock reached HK$17.80 per share, which marked the highest point since the year of its IPO in 2004. SMIC closed in Hong Kong on Thursday up nearly 7% at HK$17.28 per share.
Looking ahead, Zhao Haijun and Dr. Liang Mong Song, SMIC's two co-chief executive officers said that the company's first-quarter revenues appear to be strong.
"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, as well as a representative office in Hong Kong.