First quarter of 2016, smic posted revenue of $634 million, than with year-on-year growth of 4% and 24%, respectively, to a record high. Net profit of $61.42 million, according to 10.7% annual growth. Revenue growth was mainly the company significant expansion capacity by 20.3% to 302600 wafers per month, shipments, so an increase of 25.5%. However, Beijing joint venture 12-inch fabs in mass production since December 2015, depreciation surged 20.5% to $122 million. In addition, the company subordinate workshop in February in interruption of power supply is short, also influence in the first quarter gross margin of about 1.6%. Company MAO rate of only 24.2%, therefore, a drag on growth performance than revenue.
Smic is mainly engaged in computer aided design, manufacture, testing, packaging, and trade in integrated circuits and other semiconductor services, design and manufacture of semiconductor mask at the same time. Company plans in 2016 will continue to expand capacity by 20%, and the capital expenditures budget rise from $2.1 billion in 2016 to $2.5 billion, more than the size of the UMC22 $, depreciation budget also raised to $800 million, while the short-term causes and depreciation than expected capital spending, but will provide support for future development, because the Chinese market the business will continue to grow. At the same time, does not exclude the company through the denotation expansion in the form of acquisition, to further consolidate the company's market leading position.
Published guidelines, second-quarter revenue is expected to increase by 3-7% month-on-month and wool yield will be between 25% to 27%. Is expected in 2016 at the same time, the management company income rose by more than 20%, higher than the industry growth, 20% ~ 25% of the gross margin in 2016 issued by the previous guidelines also exist. Thanks to the downstream demand, the boom of the global semiconductor industry, coupled with the electronics industry inland migration, smic as leading manufacture, is expected to big probability to achieve positive guidance. Recommended investors at 0.64 yuan to buy, target 0.85 yuan.
