Smic Investment Value Analysis

The integrated circuit industry plays a fundamental and pioneering role in the economic and social development.Integrated circuit(IC)is an important foundation for the development of electronic information industry.In recent years,with the continuous expansion of the scale of China's integrated circuit industry,the industry has attracted increasing attention.Under the encouragement of relevant national policies and the support of investment funds,the investment value of the chip manufacturing industry in the domestic integrated circuit industry has become increasingly obvious.However,there is no research on the investment value analysis of the listed chip manufacturing companies in the integrated circuit industry.This paper will take SMIC as an example to evaluate its intrinsic value,which is of practical significance for investors and the company itself.In this paper,on the basis of reviewing relevant domestic and foreign literature,the method of combining qualitative analysis and quantitative analysis is adopted in the way of case study.The valuation model and method are applied to specific chip manufacturing companies to determine whether the companies have investment value,and then conclusions are drawn and countermeasures and suggestions are put forward.In terms of qualitative analysis,this paper analyzes the macro environment,industry development status,competition pattern and development prospect of SMIC,and then analyzes the basic situation and core competitiveness of the company,concluding that the development prospect of the company is good.In terms of quantitative analysis,according to smic in 2017-2020 year financial reporting data,from two aspects of longitudinal and transverse to the company's profitability,operation ability,solvency and development were analyzed,concluded that smic performance is stable,debt paying ability and development ability strong,most of the financial indicators is better than that of the same industry main competitors;Based on the financial data of 20 listed companies in the wafer foundry industry in 2020 as samples,this paper uses factor analysis method to construct the investment value evaluation index system of listed companies in the wafer foundry industry,and obtains that the comprehensive factor score of SMIC ranks sixth.By using three valuation models of free cash flow discount model,price-to-earnings ratio and price-to-book ratio to evaluate the value of SMIC,it is concluded that the value per share of SMIC under either method is higher than the current stock price,and the company has long-term investment value.Finally,it analyzes the reasons why the current stock price of the company is lower than the reasonable intrinsic value of the company,and then draws the conclusion and puts forward corresponding suggestions to SMIC and its investors.