Key Highlights

  • SMIC (HK:981) rose as much as 6.6% to HKD 51.95 in Hong Kong on November 13, 2026, after early gains near 5%, as the broader market fell.
  • Third-quarter Revenue was USD 3.19 billion, up 33.9% and above the USD 3.09 billion expected, with net profit of USD 428.4 million, up 123.4%.
  • Gross Margin reached 29.9%, up from 22% a year earlier and 25.3% in the second quarter, and utilisation rose to 97.3%.
  • Fourth-quarter guidance calls for revenue growth of 4% to 6% from the third quarter and a gross margin of 26% to 28%.

Results That Beat on Revenue and Margin

The report from SMIC (HK:981) was published after the Hong Kong close on November 12, 2026, and the shares reacted the next morning. Revenue of USD 3.19 billion rose 33.9% from a year earlier and 6.1% from the second quarter, above the USD 3.09 billion forecast and above the company's own guidance. Net profit attributable to shareholders of USD 428.4 million was up 123.4% and ahead of consensus of about USD 418 million. Gross Profit of USD 953.2 million lifted gross margin to 29.9%, well above the 25.3% of the second quarter. Wafer shipments reached 3.03 million eight-inch equivalents, up 5.7%, while monthly capacity rose 1.8% to 1.12 million wafers and utilisation climbed to 97.3% from 93.7%. China contributed 90.8% of revenue. The combination of price, mix and fuller factories explains the margin jump.

Guidance and the Outlook for 2026

The Q4 guide implies slower growth. Management expects revenue to rise 4% to 6% and gross margin to fall back to 26% to 28%, which suggests that the third-quarter margin may include temporary benefits or a heavier Depreciation charge to come. Co-chief executive Zhao Haijun said full-year 2026 revenue should exceed USD 12 billion, up nearly 30%, with full-year gross margin of about 26%, around five points higher than last year, even though depreciation is rising about 30%. He added that tight global Supply of chipmaking tools and long delivery times may disrupt the timing of Capital spending but not this year's capacity expansion. Capital spending was USD 1.09 billion in the quarter, down from USD 1.84 billion in the second quarter. The executive linked Demand to artificial intelligence and to the localisation of China's chip supply chain, and said the upcycle could be stretched by those forces.

Why the Shares Rose and What Could Change It

The rally came on a day when the Hang Seng fell about 0.6%, and some commentary tied it to expectations of stronger domestic chip demand if United States export curbs tighten. The shares had fallen about 32% in the third quarter and roughly another 20% in the fourth, so the report offered relief to a depressed stock. Early gains of nearly 5% to HKD 51.05 widened to as much as 6.6% later in the session. Risks include dependence on China, export control changes, tool supply delays and the guided margin decline. For investors watching SMIC (HK:981), the key points are utilisation near 97%, the path of gross margin toward the guided range, the timing of capital spending and the pace of demand from AI and local customers. A strong quarter does not remove geopolitical risk, which can move the stock regardless of results, and any tightening of export rules on equipment would limit how quickly capacity can grow.

Where Things Stand

SMIC rose as much as 6.6% in Hong Kong on November 13, 2026 after third-quarter revenue of USD 3.19 billion and net profit of USD 428.4 million beat forecasts, with gross margin at 29.9% and utilisation at 97.3%. Guidance points to slower growth and lower margin in the fourth quarter. Export policy and tool supply remain the largest risks to the story.