SMIC surges sixfold to record US$138m

Semiconductor Manufacturing International Corporation (0981) saw its net profit surge sixfold from a year ago to a record US$138 million (HK$1.08 billion) in the second quarter this year, driven by rising demand for node technology platforms.

The second-quarter profit expanded 1.15 times compared with the first three months this year.

Basic earnings per share for the three months ended June were 3 US cents.

Revenue grew 3.7 percent quarter-on-quarter, or up by 18.7 percent year-on-year, to US$938.5 million. The company's gross profit margin also climbed by 7.4 percentage points to 26.5 percent in the second quarter.

The major semiconductor maker on the mainland expects its third-quarter revenue will continue to grow by 1-3 percent quarter-on-quarter, with a forecast gross profit margin at between 19 percent and 21 percent.

The operating expenses for the third quarter this year could range from US$220 million to US$235 million.

Zhao Haijun and Liang Mong Song, SMIC's co-chief executives, said its expansion plan will be released gradually. Third-quarter revenue is expected to reach another record high.