Recently, Huajing securities, a securities firm, issued a research report to give a “sell” rating to SMIC, the largest semiconductor foundry in China and a + H listed company. The target price is 47.5 yuan, which is just 50% of the company’s issuance price. However, it is difficult for the company to stop the production from September 15, 2020. According to Huajing securities, SMIC is expected to achieve a year-on-year increase of 14-19% in 2020. In addition to the possible decline of 14nm sales (a small part of the overall business), its traditional nodes will maintain a production line load rate of more than 90%, and the overall sales volume decline in the fourth quarter of this year may be acceptable. Still, the peak in depreciation could be a fatal blow to profit margins in the second half of the year. The report shows that the number of app store purchases soared in the first half of this year due to the impact of covid-19