1Q22 net profit jumped 182% yoy to US$448m and formed 26% of our previous FY22 forecast on stronger-than-expected wafer ASP growth. SMIC continues to expand its wafer capacity, mainly in mature process nodes, to meeting strong customers demand. Reiterate Add, but with a lower TP of HK$23.80, now pegged to 1.4x FY22F P/BV, reflecting faster-than-expected wafer price erosion in FY23F/24F.