SMIC Q1 profit up 5pc, misses market estimates

Semiconductor Manufacturing International Corporation's (0981) net profit rose 5 percent to US$197.4 million (HK$1.55 billion) for the quarter ending March, while it missed the market expectations of US$215.2 million.

The Chinese largest contract chipmaker recorded revenue of US$2.5 billion. up 11.5 percent from a year ago, in line with market estimates.

The company expected that its second-quarter revenue would increase by 14 percent to 16 percent quarter-on-quarter.

Gross margin went down 2.4 percentage points to 20.1 percent from a year ago in the first quarter, while the chipmaker estimated that its second-quarter figure will be in the range of 20 percent to 22 percent.

SMIC said that it is more optimistic about our overall business for this year compared to the quarter ending December, citing its customer demand and orders in hand.

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