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CICC

Outperform

maintain

$50 -> $110

2025-11-10

Reason

The analyst rating for HUA HONG SEMI was influenced by several positive factors highlighted in the article. The company's operating revenue for 3Q25 rose by 20.7% year-over-year, aligning with previous guidance, and its gross profit margin (GPM) increased beyond expectations. Additionally, despite a net loss, the company also reported a net profit, indicating a mixed but overall positive financial performance. Based on these factors, particularly the upward movement in market valuation and expectations for future growth through large-scale platformization, CICC raised the target price significantly and maintained an Outperform rating.

CICC

Outperform

Price Target

$50 -> $110

2025-11-10

maintain

The analyst rating for HUA HONG SEMI was influenced by several positive factors highlighted in the article. The company's operating revenue for 3Q25 rose by 20.7% year-over-year, aligning with previous guidance, and its gross profit margin (GPM) increased beyond expectations. Additionally, despite a net loss, the company also reported a net profit, indicating a mixed but overall positive financial performance. Based on these factors, particularly the upward movement in market valuation and expectations for future growth through large-scale platformization, CICC raised the target price significantly and maintained an Outperform rating.

CMB International

maintain

HKD68

2025-11-10

Reason

The analyst rating for HUA HONG SEMI (01347.HK) is maintained as a "Hold" by CMB International. The reasoning behind this rating includes the company's strong performance in 3Q25, where it achieved record revenue of USD635 million, which was in line with consensus and company guidance. Additionally, the gross margin (GM) improved to 13.5%, indicating a recovery. However, the net profit was slightly below consensus expectations, which may temper enthusiasm. The broker also raised its GM estimate for 2025, reflecting stronger margin recovery, and increased its revenue forecast for 2026 due to a planned acquisition of a new plant. Despite these positive developments, the cautious stance is reflected in the "Hold" rating, suggesting that while the company shows potential, it may not be the right time for aggressive investment. The target price was adjusted to HKD68.

CMB International

Price Target

HKD68

2025-11-10

maintain

The analyst rating for HUA HONG SEMI (01347.HK) is maintained as a "Hold" by CMB International. The reasoning behind this rating includes the company's strong performance in 3Q25, where it achieved record revenue of USD635 million, which was in line with consensus and company guidance. Additionally, the gross margin (GM) improved to 13.5%, indicating a recovery. However, the net profit was slightly below consensus expectations, which may temper enthusiasm. The broker also raised its GM estimate for 2025, reflecting stronger margin recovery, and increased its revenue forecast for 2026 due to a planned acquisition of a new plant. Despite these positive developments, the cautious stance is reflected in the "Hold" rating, suggesting that while the company shows potential, it may not be the right time for aggressive investment. The target price was adjusted to HKD68.

Citi

Hold

to

Buy

upgrade

$42 -> $110

2025-11-10

Reason

The analyst rating for HUA HONG SEMI was upgraded from Hold to Buy due to expectations of improved downstream demand growth, which is anticipated to enhance the company's pricing power and business flexibility. This growth is expected to lead to better product mix, higher average selling prices, and improved profit margins, despite the company logging worse-than-expected net profit for 3Q25 due to income tax and minority interests. The target price was also elevated from HKD 42 to HKD 110.

Citi

Hold

to

Buy

Price Target

$42 -> $110

2025-11-10

upgrade

The analyst rating for HUA HONG SEMI was upgraded from Hold to Buy due to expectations of improved downstream demand growth, which is anticipated to enhance the company's pricing power and business flexibility. This growth is expected to lead to better product mix, higher average selling prices, and improved profit margins, despite the company logging worse-than-expected net profit for 3Q25 due to income tax and minority interests. The target price was also elevated from HKD 42 to HKD 110.

Citi

NULL -> Buy

upgrade

2025-11-07

Reason

The analyst rating for HUA HONG SEMI (01347.HK) is maintained at "Buy" by BOCI due to the company's solid 3Q25 results, which met revenue expectations, and a strong gross profit margin driven by higher wafer shipments, average selling price (ASP), and capacity utilization. Additionally, BOCI believes that HUA HONG SEMI will continue to benefit from robust domestic substitution momentum and AI-related demand. Consequently, they elevated the target price from $51.1 to $94.5 based on a projected price-to-book (PB) ratio of 3.2x.

Citi

NULL -> Buy

Price Target

2025-11-07

upgrade

The analyst rating for HUA HONG SEMI (01347.HK) is maintained at "Buy" by BOCI due to the company's solid 3Q25 results, which met revenue expectations, and a strong gross profit margin driven by higher wafer shipments, average selling price (ASP), and capacity utilization. Additionally, BOCI believes that HUA HONG SEMI will continue to benefit from robust domestic substitution momentum and AI-related demand. Consequently, they elevated the target price from $51.1 to $94.5 based on a projected price-to-book (PB) ratio of 3.2x.

Citi

Citi Research

Neutral -> Buy

upgrade

$45 -> $105

2025-11-07

Reason

The analyst rating for HUA HONG SEMI was upgraded from Neutral to Buy by Citi Research due to several key factors. Despite a slight miss in net profit compared to market consensus, the company demonstrated improved performance through higher capacity utilization and increased average selling prices. Notably, the gross margin of 13.5% exceeded the company's guidance range of 10-12%. Additionally, HUA HONG SEMI provided positive guidance for 4Q25, expecting a revenue increase of 3% quarter-over-quarter and a gross margin of 12-14%. Citi Research anticipates a structural improvement in the company's operating profits, leading to significant increases in their earnings forecasts for 2026 and 2027 by 87% and 108%, respectively. Consequently, they raised the target price from $45 to $105, reflecting their positive outlook on the company's future performance.

Citi

Neutral -> Buy

Price Target

$45 -> $105

2025-11-07

upgrade

The analyst rating for HUA HONG SEMI was upgraded from Neutral to Buy by Citi Research due to several key factors. Despite a slight miss in net profit compared to market consensus, the company demonstrated improved performance through higher capacity utilization and increased average selling prices. Notably, the gross margin of 13.5% exceeded the company's guidance range of 10-12%. Additionally, HUA HONG SEMI provided positive guidance for 4Q25, expecting a revenue increase of 3% quarter-over-quarter and a gross margin of 12-14%. Citi Research anticipates a structural improvement in the company's operating profits, leading to significant increases in their earnings forecasts for 2026 and 2027 by 87% and 108%, respectively. Consequently, they raised the target price from $45 to $105, reflecting their positive outlook on the company's future performance.

CLSA

Outperform

upgrade

2025-11-07

Reason

The analyst rating for HUA HONG SEMI was influenced by several positive factors highlighted in the CLSA research report. The key reasons for the Outperform rating and the increase in target price from HKD 68.4 to HKD 95.6 include: 1. Strong 3Q25 GPM and 4Q25 Guidance: The company's gross profit margin (GPM) for the third quarter of 2025 and guidance for the fourth quarter exceeded expectations, driven by a recovery in demand and higher average selling prices due to an upgraded product mix. 2. Capacity Expansion: Progress in expanding capacity at the new 12-inch wafer plant is in line with expectations, indicating effective operational execution. 3. Acquisition Progress: The ongoing acquisition of the Hua Hong Fab5 plant project is proceeding as planned, which is expected to further enhance the company's production capabilities. These factors collectively suggest a positive outlook for HUA HONG SEMI, justifying the upgraded rating and target price.

CLSA

Outperform

Price Target

2025-11-07

upgrade

The analyst rating for HUA HONG SEMI was influenced by several positive factors highlighted in the CLSA research report. The key reasons for the Outperform rating and the increase in target price from HKD 68.4 to HKD 95.6 include: 1. Strong 3Q25 GPM and 4Q25 Guidance: The company's gross profit margin (GPM) for the third quarter of 2025 and guidance for the fourth quarter exceeded expectations, driven by a recovery in demand and higher average selling prices due to an upgraded product mix. 2. Capacity Expansion: Progress in expanding capacity at the new 12-inch wafer plant is in line with expectations, indicating effective operational execution. 3. Acquisition Progress: The ongoing acquisition of the Hua Hong Fab5 plant project is proceeding as planned, which is expected to further enhance the company's production capabilities. These factors collectively suggest a positive outlook for HUA HONG SEMI, justifying the upgraded rating and target price.

BofA Securities

Underperform

maintain

$59

2025-11-07

Reason

BofA Securities reiterated an Underperform rating on HUA HONG SEMI due to concerns about intense competition in the semiconductor market, which leads to a cautiously optimistic outlook for next year's prices. While the company has shown strong sales growth and exceeded gross profit margin guidance, the management's view on limited upward potential for wafer prices, despite improvements in product mix and technological upgrades, contributed to the negative rating. The target price set by BofA Securities is HKD59.

BofA Securities

Underperform

Price Target

$59

2025-11-07

maintain

BofA Securities reiterated an Underperform rating on HUA HONG SEMI due to concerns about intense competition in the semiconductor market, which leads to a cautiously optimistic outlook for next year's prices. While the company has shown strong sales growth and exceeded gross profit margin guidance, the management's view on limited upward potential for wafer prices, despite improvements in product mix and technological upgrades, contributed to the negative rating. The target price set by BofA Securities is HKD59.

Nomura

Neutral

maintain

$46

2025-11-07

Reason

Nomura maintained a Neutral rating on HUA HONG SEMI due to the company's 3Q25 revenue growth of 12% QoQ, which met expectations, and a gross profit margin (GPM) of 13.5% that exceeded guidance. This positive performance was attributed to improved capacity utilization and a 5% QoQ increase in average selling price. Despite these favorable results, the rating suggests a cautious outlook, reflected in the target price of HKD46.

Nomura

Neutral

Price Target

$46

2025-11-07

maintain

Nomura maintained a Neutral rating on HUA HONG SEMI due to the company's 3Q25 revenue growth of 12% QoQ, which met expectations, and a gross profit margin (GPM) of 13.5% that exceeded guidance. This positive performance was attributed to improved capacity utilization and a 5% QoQ increase in average selling price. Despite these favorable results, the rating suggests a cautious outlook, reflected in the target price of HKD46.

Goldman Sachs

Buy

maintain

$117

2025-11-07

Reason

Goldman Sachs maintained a "Buy" rating on HUA HONG SEMI due to the company's 3Q25 gross margin performance, which improved to 13.5%, exceeding both company guidance and market expectations. Additionally, the operating loss was narrower than anticipated, and the net profit, while slightly below Goldman Sachs' forecast, was better than market consensus. The firm also adjusted its forecasts for future gross margins and capital expenditures positively, which contributed to the decision to keep the target price at $117.

Goldman Sachs

Buy

Price Target

$117

2025-11-07

maintain

Goldman Sachs maintained a "Buy" rating on HUA HONG SEMI due to the company's 3Q25 gross margin performance, which improved to 13.5%, exceeding both company guidance and market expectations. Additionally, the operating loss was narrower than anticipated, and the net profit, while slightly below Goldman Sachs' forecast, was better than market consensus. The firm also adjusted its forecasts for future gross margins and capital expenditures positively, which contributed to the decision to keep the target price at $117.

Goldman Sachs

Buy

maintain

$11.7

2025-11-07

Reason

The analyst rating for HUA HONG SEMI was maintained as a "Buy" due to the company's guidance for a 2-4% quarter-over-quarter revenue growth for 4Q25, which reflects a sustained recovery trend. Additionally, the gross margin (GM) guidance of 12-14% for 4Q25 is above Goldman Sachs' and market forecasts, indicating positive performance expectations. The company's revenue for 3Q25 also met expectations, with a GM of 13.5%, surpassing both the company's guidance and analyst estimates. These factors contribute to the positive outlook and support the maintained target price of HKD11.7.

Goldman Sachs

Buy

Price Target

$11.7

2025-11-07

maintain

The analyst rating for HUA HONG SEMI was maintained as a "Buy" due to the company's guidance for a 2-4% quarter-over-quarter revenue growth for 4Q25, which reflects a sustained recovery trend. Additionally, the gross margin (GM) guidance of 12-14% for 4Q25 is above Goldman Sachs' and market forecasts, indicating positive performance expectations. The company's revenue for 3Q25 also met expectations, with a GM of 13.5%, surpassing both the company's guidance and analyst estimates. These factors contribute to the positive outlook and support the maintained target price of HKD11.7.

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