BofAS Maintains Underperform Rating on HUA HONG SEMI; Management Expresses Cautious Optimism for Next Year
3Q25 Sales Performance: HUA HONG SEMI reported a 21% year-over-year and 12% quarter-over-quarter increase in sales for 3Q25, reaching USD 635 million, slightly below the broker's forecast of USD 636 million, with a gross profit margin (GPM) of 13.5%.
4Q25 Sales Outlook: The company anticipates a 2-4% quarter-over-quarter sales growth for 4Q25, projecting sales between USD 650-660 million and a GPM of 12-14%, while expecting further improvements in semiconductor wafer prices.
Cautious Price Outlook: HUA HONG SEMI's management expresses cautious optimism for next year's pricing due to intense competition, despite potential support from product mix improvements and technological upgrades.
Broker Rating: BofA Securities maintains an Underperform rating on HUA HONG SEMI, setting a target price of HKD 59 amidst the current market conditions.
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UBS Increases Target Price for HUA HONG SEMI (01347.HK) to $104 and Upgrades EPS Projections
Sales Performance: HUA HONG SEMI reported a 4% QoQ increase in 4Q25 sales to approximately US$660 million, meeting the high end of its guidance due to higher wafer shipments and average selling prices.
Gross Margin and Costs: The company's gross margin decreased by 57 bps QoQ to 13%, slightly below market expectations, primarily due to rising labor costs.
Analyst Ratings: BofAS noted that HUA HONG SEMI continues to experience operating losses and maintained an underperform rating, while UBS raised its 2026 EPS forecast by 57% and increased the target price from $80 to $104, keeping a Neutral rating.
Short Selling Data: The short selling amount for HUA HONG SEMI was reported at $363.02 million, with a short selling ratio of 12.91%.
HTSC Raises HUA HONG SEMI's Target Price to HKD121; Price Increase and Capacity Expansion Propel Rapid Growth
Company Growth: HUA HONG SEMI is entering a fast-growth phase, with a 22.4% year-over-year increase in sales revenue for 4Q25, reaching USD 659.9 million.
Target Price Adjustment: Huatai Securities has raised its target price for HUA HONG SEMI from HKD 120 to HKD 121 while maintaining a Buy rating.
Short Selling Data: The company has a short selling amount of $363.02 million, with a ratio of 12.910%.
Market Analysis: Citi has also raised target prices for HUA HONG SEMI and SMIC to HKD 115 and HKD 75, respectively.
CLSA Maintains Outperform Rating on HUA HONG SEMI, Anticipates Continued Rapid Growth in AI-Related Business
Research Report Overview: CLSA's report on HUA HONG SEMI indicates that 4Q25 results and 1Q26 guidance are in line with expectations, driven by growth in AI-related products despite challenges in consumer electronics due to memory shortages.
Capacity and Capital Expenditure: The company's Fab9A is expected to reach peak capacity through 2026, while Fab9B's capacity will ramp up. Capital expenditure for 2026 is projected to decrease year-over-year, with a significant increase anticipated in 2027.
Target Price Adjustment: CLSA has raised its target price for HUA HONG SEMI to HKD129.5 and maintains an Outperform rating, reflecting confidence in the company's growth prospects.
Short Selling Data: As of February 13, 2026, HUA HONG SEMI has a short selling volume of $363.02 million, with a short selling ratio of 12.91%.
BofAS Reports HUA HONG SEMI (01347.HK) Still Facing Operating Losses, Maintains Underperform Rating
Company Performance: HUA HONG SEMI reported 4Q25 sales of USD660 million, reflecting a 4% quarter-over-quarter increase and a 22% year-over-year increase, aligning with expectations despite ongoing operating losses.
Financial Outlook: BofA Securities raised the company's target price from HKD59 to HKD61 while maintaining an Underperform rating, anticipating a resumption of dividends in 2026.
G Sachs Maintains Buy Rating on HUA HONG SEMI; 4Q Revenue and Gross Profit Margin Meet Expectations
Revenue Guidance: HUA HONG SEMI has guided for a 1% QoQ decline or flat revenue for 1Q26, with a gross profit margin (GPM) expected to be between 13-15%, reflecting improvements in capacity utilization and cost control.
Performance in 4Q25: In 4Q25, the company reported a 22% YoY revenue increase to USD660 million, with a GPM of 13%, aligning with Goldman Sachs' expectations.
Market Expectations: The midpoint of HUA HONG SEMI's revenue guidance is lower than market expectations, while the GPM guidance meets and slightly exceeds them.
Analyst Ratings: Goldman Sachs maintains a Buy rating on HUA HONG SEMI with a target price of HKD134, while Citi has raised target prices for both HUA HONG SEMI and SMIC.
Citi Increases Price Targets for SMIC and HUA HONG SEMI to HKD 75 and HKD 115
Financial Results Overview: SMIC and HUA HONG SEMI's 4Q25 financial results were in line with company guidance, but the 1Q26 outlook was slightly below expectations.
Market Performance: SMIC's stock rose by 0.501% and HUA HONG SEMI's by 0.854%, with significant short selling activity reported for both companies.
Growth Prospects: Both companies expect growth driven by localization demand for semiconductors in China and AI opportunities, despite challenges from increased depreciation and competition affecting profit margins.
Target Price Adjustments: Citi raised SMIC's target price from HKD53 to HKD75 (Neutral rating) and HUA HONG SEMI's from HKD105 to HKD115 (Buy rating).
UBS Increases Target Price for HUA HONG SEMI (01347.HK) to $104 and Upgrades EPS Projections
Sales Performance: HUA HONG SEMI reported a 4% QoQ increase in 4Q25 sales to approximately US$660 million, meeting the high end of its guidance due to higher wafer shipments and average selling prices.
Gross Margin and Costs: The company's gross margin decreased by 57 bps QoQ to 13%, slightly below market expectations, primarily due to rising labor costs.
Analyst Ratings: BofAS noted that HUA HONG SEMI continues to experience operating losses and maintained an underperform rating, while UBS raised its 2026 EPS forecast by 57% and increased the target price from $80 to $104, keeping a Neutral rating.
Short Selling Data: The short selling amount for HUA HONG SEMI was reported at $363.02 million, with a short selling ratio of 12.91%.
HTSC Raises HUA HONG SEMI's Target Price to HKD121; Price Increase and Capacity Expansion Propel Rapid Growth
Company Growth: HUA HONG SEMI is entering a fast-growth phase, with a 22.4% year-over-year increase in sales revenue for 4Q25, reaching USD 659.9 million.
Target Price Adjustment: Huatai Securities has raised its target price for HUA HONG SEMI from HKD 120 to HKD 121 while maintaining a Buy rating.
Short Selling Data: The company has a short selling amount of $363.02 million, with a ratio of 12.910%.
Market Analysis: Citi has also raised target prices for HUA HONG SEMI and SMIC to HKD 115 and HKD 75, respectively.
CLSA Maintains Outperform Rating on HUA HONG SEMI, Anticipates Continued Rapid Growth in AI-Related Business
Research Report Overview: CLSA's report on HUA HONG SEMI indicates that 4Q25 results and 1Q26 guidance are in line with expectations, driven by growth in AI-related products despite challenges in consumer electronics due to memory shortages.
Capacity and Capital Expenditure: The company's Fab9A is expected to reach peak capacity through 2026, while Fab9B's capacity will ramp up. Capital expenditure for 2026 is projected to decrease year-over-year, with a significant increase anticipated in 2027.
Target Price Adjustment: CLSA has raised its target price for HUA HONG SEMI to HKD129.5 and maintains an Outperform rating, reflecting confidence in the company's growth prospects.
Short Selling Data: As of February 13, 2026, HUA HONG SEMI has a short selling volume of $363.02 million, with a short selling ratio of 12.91%.
BofAS Reports HUA HONG SEMI (01347.HK) Still Facing Operating Losses, Maintains Underperform Rating
Company Performance: HUA HONG SEMI reported 4Q25 sales of USD660 million, reflecting a 4% quarter-over-quarter increase and a 22% year-over-year increase, aligning with expectations despite ongoing operating losses.
Financial Outlook: BofA Securities raised the company's target price from HKD59 to HKD61 while maintaining an Underperform rating, anticipating a resumption of dividends in 2026.
G Sachs Maintains Buy Rating on HUA HONG SEMI; 4Q Revenue and Gross Profit Margin Meet Expectations
Revenue Guidance: HUA HONG SEMI has guided for a 1% QoQ decline or flat revenue for 1Q26, with a gross profit margin (GPM) expected to be between 13-15%, reflecting improvements in capacity utilization and cost control.
Performance in 4Q25: In 4Q25, the company reported a 22% YoY revenue increase to USD660 million, with a GPM of 13%, aligning with Goldman Sachs' expectations.
Market Expectations: The midpoint of HUA HONG SEMI's revenue guidance is lower than market expectations, while the GPM guidance meets and slightly exceeds them.
Analyst Ratings: Goldman Sachs maintains a Buy rating on HUA HONG SEMI with a target price of HKD134, while Citi has raised target prices for both HUA HONG SEMI and SMIC.
Citi Increases Price Targets for SMIC and HUA HONG SEMI to HKD 75 and HKD 115
Financial Results Overview: SMIC and HUA HONG SEMI's 4Q25 financial results were in line with company guidance, but the 1Q26 outlook was slightly below expectations.
Market Performance: SMIC's stock rose by 0.501% and HUA HONG SEMI's by 0.854%, with significant short selling activity reported for both companies.
Growth Prospects: Both companies expect growth driven by localization demand for semiconductors in China and AI opportunities, despite challenges from increased depreciation and competition affecting profit margins.
Target Price Adjustments: Citi raised SMIC's target price from HKD53 to HKD75 (Neutral rating) and HUA HONG SEMI's from HKD105 to HKD115 (Buy rating).
