Core Viewpoint - The chip industry in 2025 is experiencing significant fluctuations due to tariff events and supply shortages, leading to price surges and market speculation, with mixed sentiments regarding overall demand growth [3][4]. Original Manufacturers - Domestic analog manufacturers report a 20% decline in consumer segment revenue for 2025 compared to 2024, while industrial segment revenue is expected to double, returning to levels seen in 2020-2022, with a projected 30% growth in 2026 [3][4]. - Overseas chip manufacturers anticipate stable revenue in 2025 compared to 2024, with new opportunities arising in the automotive sector [5]. Distributors - Chip distributors indicate an increase in customer volume and product lines in 2025, but face declining profit margins and extended payment terms, with overall risks increasing [7]. - A distributor focusing on trade reports a stable performance in 2025, with opportunities arising from the storage sector and a cautious outlook for 2026 due to high risks associated with new products [8][15]. Trade - Chip traders report a 50% increase in business in 2025 compared to 2024, driven by demand for ADI and storage products, with a positive outlook for 2026 [18]. - Another trader notes that demand for storage products has improved significantly since March 2025, with expectations of a favorable market in 2026 due to AI server demand and rising raw material costs [19]. Foreign Trade - Foreign trade companies indicate improved performance in 2025, primarily due to business from the Anshi brand, with strong demand from Europe and the US [21][22]. Solution Providers - Chip solution providers report growth in 2025, particularly in the second half of the year, but express concerns about market competition and uncertainty in product development cycles [24][25]. Major Companies Dynamics - TSMC reported a revenue of NT$343.6 billion in November 2025, with a year-on-year increase of 24.5%, and revised its revenue growth forecast for 2025 to mid-thirty percent [28]. - SMIC achieved a revenue of $2.382 billion in Q3 2025, with a year-on-year growth of 17.4%, and plans to raise prices for certain processes by 10% [29]. - Hua Hong Semiconductor reported a revenue of $6.352 billion in Q3 2025, with a utilization rate exceeding 100% for seven consecutive quarters [30]. - Longsys Technology achieved a revenue of NT$100.6 billion in Q3 2025, marking a historical high and a year-on-year increase of 14.8% [31]. - Foxconn reported a 22.07% year-on-year revenue growth in Q4 2025, driven by strong performance in AI-related infrastructure [32]. - Winbond's revenue reached NT$107.93 billion in the first 11 months of 2025, a year-on-year increase of 24.98%, attributed to strong demand in automotive and communication components [34].

Investment Rating - The industry investment rating is "Overweight" (maintained) [1] Core Insights - The strong demand for AI is expected to drive price increases for TSMC's advanced process technology from 2026 to 2029, indicating a trend of continuous supply shortages globally [3][4] - Domestic demand for advanced logic chips is anticipated to rise rapidly, with significant growth in both demand and supply expected during the 14th Five-Year Plan period [5] - Recent capital market activities by SMIC and Hua Hong Semiconductor suggest improvements in profitability and advancements in advanced logic processes [6] Summary by Sections Industry Trends - TSMC's N2 node is set to begin mass production in Q4 2025, with initial monthly capacity of approximately 35,000 wafers, expected to increase to 140,000 wafers by the end of 2026, surpassing previous market estimates [4] - The demand for advanced processes remains tight despite the early ramp-up of U.S. wafer fabs and the unexpected capacity of 2nm technology [4] Demand and Supply Dynamics - The import scale of core semiconductor equipment in Shanghai reached approximately 55.8 billion yuan from January to November 2025, a 41% increase compared to 2024, indicating a favorable expansion pace [5] - The trend of "China for China" in advanced process foundries is expected to gain momentum as domestic technology matures [5] Capital Market Activities - SMIC's acquisition of the remaining 49% stake in SMIC North is expected to enhance profit margins, with a projected 19% increase in net profit for the first eight months of 2025 [6] - Hua Hong's acquisition of Hua Li Micro is anticipated to improve revenue by 30% and net profit by 269% for the same period [6] Investment Recommendations - The semiconductor equipment and foundry sectors are expected to benefit from the growth in advanced process demand, with recommended stocks including SMIC, Hua Hong Semiconductor, and others [7]

Core Viewpoint - Huahong Semiconductor (01347) has seen a significant stock price increase, with a rise of nearly 6% in intraday trading and an overall increase of over 40% since December 17. The current stock price is reported at HKD 92.85 with a trading volume of HKD 22.25 billion [4]. Group 1: Acquisition Details - Huahong Semiconductor plans to acquire approximately 97.5% of Huali Micro for a transaction price of HKD 8.268 billion. This acquisition is expected to enhance the company's market share in the global foundry market and improve supply capabilities in specialty processes [4]. - The integration of Huali Micro is anticipated to significantly boost Huahong's performance, with projected net profit increasing from HKD 380 million to HKD 960 million, representing a 151% growth. This will also elevate earnings per share (EPS) from HKD 0.22 to HKD 0.50, a 127% increase [4]. Group 2: Financial Impact - The acquisition is expected to bring in approximately HKD 7.6 billion in cash through supporting financing, which will enhance the company's total assets and net assets by 16% and 21% respectively. This will significantly improve liquidity and support production line upgrades [4].

Summary of Hua Hong Conference Call Company Overview - **Company**: Hua Hong (1347.HK) - **Industry**: Semiconductor Manufacturing Key Points Demand and Capacity Expansion - Management anticipates solid demand across technology platforms, supporting high utilization rates (UT rate) [1] - Fab 9B is projected to ramp up to 83k wafers by 2027, with additional capacity for 28/22nm products planned for 2027-29 [1][6] Product Mix and Pricing Strategy - The company plans to optimize its product mix and increase average selling prices (ASP) by 5-10% due to strong end-market demand [6][7] - Continuous cost management efforts are expected to enhance profitability [6] Local Supplier Utilization - Hua Hong aims to increase the use of local suppliers for semiconductor production equipment (SPE) and materials, currently at a local supply ratio of 20-30% [6] Financial Outlook - The company is positive about profitability due to a better cost structure and disciplined depreciation [6] - Management expects a small increase in depreciation for Fab 7 in 2026, stabilizing for 2-3 years before decreasing [6] Valuation and Price Target - The 12-month target price for Hua Hong is set at HK$117.0, based on a P/E ratio of 68.8x for 2028E, reflecting a positive outlook driven by sustainable scale expansions and technology migrations [3][7] - Current market cap is HK$146.0 billion, with an expected revenue increase from HK$2,004 million in 2024 to HK$4,004 million by 2027 [8] Risks - Key downside risks include weaker-than-expected end-market demand, slower ramp-up of 12" fabs, and uncertainties surrounding US-China trade relations [7] Additional Insights - The company maintains a Buy rating due to high loading, continuous capacity expansions, and migration towards advanced technology nodes [1] - The report emphasizes the importance of localizing suppliers to improve profit margins and production efficiency [6] This summary encapsulates the essential insights from the conference call regarding Hua Hong's operational strategies, financial outlook, and market positioning within the semiconductor industry.

港股半导体板块走高，华虹半导体涨超5%，中芯国际涨超3%，晶门半导体涨超2%。 ...

Core Viewpoint - Huahong Semiconductor (01347) has seen a significant stock price increase of over 40% since December 17, with a current price of 94.3 HKD and a trading volume of 1.016 billion HKD, following the announcement of its acquisition of approximately 97.5% of Huali Micro for 8.268 billion CNY [1] Group 1: Acquisition Impact - The acquisition of Huali Micro is expected to enhance Huahong Semiconductor's market share in the global wafer foundry market and improve its supply capacity in specialty processes [1] - The integration is anticipated to boost the company's performance significantly, with projected net profit increasing from 380 million CNY to 960 million CNY, representing a 151% growth [1] - Earnings per share (EPS) is expected to rise from 0.22 CNY to 0.50 CNY, indicating a 127% increase in profitability [1] Group 2: Financial Strengthening - The acquisition will potentially introduce approximately 7.6 billion CNY in cash, enhancing the company's liquidity and supporting production line upgrades [1] - Total assets and net assets are projected to increase by 16% and 21%, respectively, following the acquisition and associated financing [1]

华泰证券发布研报称，以2024年数据进行备考测算：利润端，华力微作为优质晶圆代工资产，其注入或 将立竿见影地增厚业绩。备考归母净利润预计从3.8亿元增长151%至9.6亿元，带动EPS从0.22元增长 127%至0.50元，盈利能力或实现跨越式提升。资产端，若考虑配套融资，公司将引入约76亿元现金"活 水"，公司总资产/归母净资产或增厚16%/21%，大幅充实流动性并助力产线升级。 华虹半导体(01347)再涨近6%，12月17日至今累计涨幅已超40%。截至发稿，涨5.6%，报94.3港元，成 交额10.16亿港元。 消息面上，华虹半导体近期宣布，拟以82.68亿元的交易价格，收购华力微约97.5%股权。整合完成后， 公司在全球晶圆代工市场的份额有望进一步提升，特色工艺领域供给能力或增强。同时，募资或助力公 司推进产线升级、进一步拓产，提高研发能力。 ...

Core Viewpoint - The Hang Seng Index fell by 0.94% on January 7, with southbound capital transactions totaling HKD 134.39 billion, indicating a net inflow of HKD 9.18 billion [2] Group 1: Southbound Capital Transactions - Total southbound capital transactions amounted to HKD 134.39 billion, with buy transactions at HKD 71.79 billion and sell transactions at HKD 62.61 billion, resulting in a net buy of HKD 9.18 billion [2] - The Shenzhen Stock Connect saw total transactions of HKD 53.91 billion, with net buying of HKD 5.69 billion, while the Shanghai Stock Connect had total transactions of HKD 80.49 billion, with net buying of HKD 3.49 billion [2] Group 2: Active Stocks - Alibaba-W had the highest transaction amount among southbound stocks at HKD 15.06 billion, followed by SMIC and Tencent Holdings with HKD 6.48 billion and HKD 6.27 billion respectively [2][4] - Tencent Holdings recorded a net buy of HKD 1.96 billion, while Xiaomi Group-W had a net buy of HKD 1.63 billion, and the Yingfu Fund saw a net buy of HKD 1.47 billion [2][3] - China Mobile experienced the highest net sell at HKD 1.13 billion, with its stock price declining by 0.97% [2][4] Group 3: Continuous Net Buying - Four stocks received continuous net buying from southbound capital for more than three days, with Xiaomi Group-W leading at five days, followed by Alibaba-W at four days, and China Life at three days [3] - The total net buying amounts during this period were HKD 3.61 billion for Xiaomi Group-W, HKD 2.12 billion for Alibaba-W, and HKD 1.25 billion for China Life [3]

Core Insights - On January 7, 2026, Alibaba-W (09988), SMIC (00981), and Tencent Holdings (00700) were the top three stocks by trading volume in the Southbound Stock Connect, with trading amounts of 83.52 billion, 44.91 billion, and 34.34 billion respectively [1] - In the Southbound Stock Connect for the Shenzhen-Hong Kong Stock Connect, Alibaba-W (09988), Tencent Holdings (00700), and SMIC (00981) also ranked as the top three, with trading amounts of 67.05 billion, 28.31 billion, and 19.91 billion respectively [1] Southbound Stock Connect (Shanghai-Hong Kong) - The top active stocks included: - Alibaba-W (09988): Trading amount of 83.52 billion, net buying of +9.74 billion - SMIC (00981): Trading amount of 44.91 billion, net selling of -10.38 billion - Tencent Holdings (00700): Trading amount of 34.34 billion, net buying of +8.86 billion - Xiaomi Group-W (01810): Trading amount of 23.83 billion, net buying of +8.13 billion - China Mobile (00941): Trading amount of 22.60 billion, net selling of -11.26 billion [2] Southbound Stock Connect (Shenzhen-Hong Kong) - The top active stocks included: - Alibaba-W (09988): Trading amount of 67.05 billion, net selling of -8.50 billion - Tencent Holdings (00700): Trading amount of 28.31 billion, net buying of +10.69 billion - SMIC (00981): Trading amount of 19.91 billion, net selling of -3.20 million - Xiaomi Group-W (01810): Trading amount of 16.55 billion, net buying of +8.19 billion - Meituan-W (03690): Trading amount of 13.07 billion, net buying of +4.48 billion [2]

股份發行人及根據《上市規則》第十九B章上市的香港預託證券發行人的證券變動月報表 | 1. 股份分類 | 普通股 | | 股份類別 | 不適用 | | 於香港聯交所上市 (註1) | 是 | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | | 證券代號 (如上市) | 01347 | 說明 | | | | | | | | | | 已發行股份（不包括庫存股份）數目 | | | 庫存股份數目 | | 已發行股份總數 | | | 上月底結存 | | | | 1,328,249,496 | | 0 | | 1,328,249,496 | | 增加 / 減少 (-) | | | | 1,614,697 | | | | | | 本月底結存 | | | | 1,329,864,193 | | 0 | | 1,329,864,193 | | 2. 股份分類 | 普通股 | 股份類別 | A | | 於香港聯交所上市 (註1) | 否 | | | --- | --- | --- | --- | --- | --- | --- | --- | | 證券代號 (如上 ...