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<Research>HTSC: SMIC Optimizes Capital Structure to Unleash Profit Flexibility; Rating Kept Buy
Recommend 18 Positive 30 Negative 13 |
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SMIC (00981.HK) plans to acquire a 49% equity stake in SMNC held by shareholders like China IC Fund through a share issuance for a consideration of around RMB40.6 billion, Huatai Securities wrote in its research report. Simultaneously, it will collaborate with institutions like the third phase of the China's integrated circuit Big Fund to inject USD7.778 billion into SMSC. The calculations suggest that these transactions may bring significant financial enhancement effects, including the introduction of around USD4.1 billion in external funds to SMSC, potentially boosting cash reserves by about 101%. Additionally, the equity swap acquisition in SMNC may increase the company's net assets, potentially driving a 6.3% growth in net asset value per share to RMB20.1. Huatai Securities has kept a target price of HKD100 for SMIC's H-shares and given its A-shares (688981.SH) a target price of RMB192 and an unchanged Buy rating. AAStocks Financial News |
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