BEIJING, Aug. 20 (InfoChina) – Morgan Stanley has kept its “neutral” rating on Semiconductor Manufacturing International Corporation (SMIC, NYSE: SMI, HK: 0981), and set target price at 1.26 HK dollars.
The investment bank said that low valuation of SMIC shares would limit significant price slump.
Poor profit records, lagging development of technology, narrowed customer base and unfocused development strategy are reasons behind the low valuation of SMIC, said Morgan Stanley, predicting that the company would continue to suffer loss in several quarters to come.
Morgan Stanley added that successful development of 65-narometer technology and the attractiveness of 90-natometer production to customers are crucial for SMIC.
H-share of SMIC hiked 3.488 percent to close at 0.89 HK dollars on August 20. (Edited by Chen Dongyi,
)
China Stock News 
