该行维持对公司今年收入预测基本不变，因产能装机增加及折旧增加，下调公司今年净利润预测27%至 1.09亿美元；考虑到平台化预期和产品结构改善，上调对公司明年年收入预测6%至29.72亿美元，上调 明年净利润预测27%至2.16亿美元。该行基于市场估值中枢上行和市场对公司未来大平台化的预期，上 调华虹半导体目标价120%至110港元，维持"跑赢行业"评级。 中金发表报告表示，华虹半导体第三季营收按年升20.7%至6.35亿美元，符合此前指引的6.2亿至6.4亿美 元区间；毛利率按年升1.3个百分点至13.5%，超出此前给予的10%至12%指引区间，纯利2572万美元。 该行指，华虹半导体季度收入符预期，毛利率和净利润因价格调涨及产品结构调整改善而超出预期。 ...

招银国际发表研报指，华虹半导体第三季度收入创历史新高达6.35亿美元，按年增长21%，符合市场一 致预期及公司指引；毛利率恢复至13.5%，按年增长1.4个百分点；净利润2600万美元，较市场预期低 5.3%。公司指引四季度收入6.5亿至6.6亿美元，毛利率介乎12%至14%。该行维持华虹半导体2025年全 年收入预测，并将全年毛利率预测由10.9%上调至12%，反映更强的利润率修复。考虑到计划中的新厂 并购(预计2026年8月左右完成，年收入贡献6亿至7亿美元)，该行上调公司2026年收入预测至32亿美 元；维持"持有"评级，目标价调整至68港元。 ...

Core Viewpoint - Hua Hong Semiconductor reported a record high sales revenue in Q3, but net profit fell significantly due to high depreciation costs and tax impacts [1] Financial Performance - Q3 sales revenue reached $635.2 million, a year-on-year increase of 20.7% and a quarter-on-quarter increase of 12.2% [1] - Net profit attributable to shareholders was $25.7 million, a year-on-year decline of 42.6% but a quarter-on-quarter increase of 223.5% [1] - Q4 sales revenue is expected to be between $650 million and $660 million, with a projected gross margin of 12% to 14% [1] Market Analysis - CCB International noted that the Q3 performance was solid, with revenue meeting expectations and a strong gross margin increase of 2.6 percentage points to 13.5%, driven by higher wafer shipments, average selling prices (ASP), and capacity utilization [1] - Daiwa highlighted that while net profit was below expectations due to tax and minority interest impacts, other key metrics exceeded their forecasts [1] - The company is expected to benefit from increased downstream demand, enhancing pricing power and business flexibility, which will improve product mix, ASP, and profit margins [1] - The company is positioned to benefit as a wafer supplier for AI collaborative chips, anticipating continued momentum in AI development next year [1]

Core Viewpoint - Hua Hong Semiconductor reported a record high sales revenue in Q3, but net profit fell significantly due to high depreciation costs, leading to a mixed outlook for Q4 [1] Financial Performance - Q3 sales revenue reached $635.2 million, a year-on-year increase of 20.7% and a quarter-on-quarter increase of 12.2% [1] - Net profit attributable to shareholders was $25.7 million, a year-on-year decline of 42.6% but a quarter-on-quarter increase of 223.5% [1] - Q4 sales revenue is expected to be between $650 million and $660 million, with a projected gross margin of 12% to 14% [1] Market Analysis - CCB International noted that the Q3 performance was solid, with revenue meeting expectations and a strong gross margin increase of 2.6 percentage points to 13.5%, driven by higher wafer shipments, average selling prices (ASP), and capacity utilization [1] - Daiwa highlighted that while net profit was below expectations due to tax and minority interest impacts, other key indicators exceeded their forecasts [1] - The company is expected to benefit from increased downstream demand, enhancing pricing power and business flexibility, which could improve product mix, ASP, and profit margins [1] - As a wafer supplier for AI collaborative chips, the company is anticipated to gain from the ongoing momentum in AI development next year [1]

Summary of Hua Hong's Earnings Call Company Overview - **Company**: Hua Hong (1347.HK) - **Industry**: Semiconductor Manufacturing Key Financial Metrics - **4Q25 Revenue Guidance**: Expected to grow by +2% to +4% QoQ, with a gross margin (GM) of 12% to 14% [1][2] - **3Q25 Results**: - Revenue: US$635 million, +21% YoY, +12% QoQ [1] - Gross Margin: 13.5%, improved from 10.9% in 2Q25 [1] - Operating Loss: Narrowed to US$15 million [1] - Net Income: US$26 million, 13% below Goldman Sachs estimate [1] Market Outlook - **2026 Demand Outlook**: Management is cautiously optimistic, expecting better overall market dynamics compared to 2025, which may support or improve average selling prices (ASPs) [2][3][4] - **ASP Improvement**: 3Q25 ASP increased by 5% QoQ due to price adjustments and a better product mix [4] Capacity Expansion - **Second 12-inch Fab**: On track to ramp up capacity, expected to reach full capacity by mid-2026, increasing total capacity to 468k wpm by 3Q25 [5] - **Future Plans**: Another new fab is under planning [9] Growth Opportunities - **AI Applications**: Increasing demand for PMICs for data centers [2] - **Domestic Demand**: Sustainable long-term demand from growing domestic clients and the "China for China" production trend [2] - **Technology Migration**: Transitioning to 28nm technology node, which is expected to drive growth [2][4] Financial Projections - **2025 Revenue Estimate**: US$2.397 billion, a 2% decrease from previous estimates [12] - **2026 Revenue Estimate**: US$3.214 billion, unchanged from previous estimates [12] - **Long-term EPS Projections**: EPS expected to grow steadily, with 2028E EPS at US$0.36 [12] Valuation and Price Target - **Target Price**: HK$117.00, based on a 68.8x 2028E P/E ratio [22] - **Current Price**: HK$80.10, indicating a potential upside of 46.1% [25] Risks - **Downside Risks**: 1. Weaker-than-expected end-market demand [23] 2. Slower-than-expected ramp-up of the 12" fab [23] 3. Uncertainties surrounding US-China trade relations [23] Conclusion - **Investment Recommendation**: Maintain Buy rating due to positive outlook driven by capacity expansion, technology migration, and growing demand in AI applications [2][22]

Core Viewpoint - Daiwa's report indicates that Huahong Semiconductor (01347) reported third-quarter net profit below expectations due to income tax and minority interest impacts, but other key indicators exceeded the firm's forecasts [1] Group 1: Financial Performance - The third-quarter net profit of Huahong Semiconductor was lower than expected, primarily affected by income tax and minority interests [1] - Other key performance indicators were better than Daiwa's expectations [1] Group 2: Market Outlook - The company is expected to benefit from increased downstream demand, enhancing its pricing power and business flexibility, which will drive improvements in product mix, average selling price, and profit margins [1] - As a wafer supplier for AI collaborative chips, Huahong is anticipated to gain from the ongoing momentum in AI development next year [1] Group 3: Strategic Initiatives - The "China for China" strategy from overseas clients is expected to benefit the company, along with the synergies from the acquisition of the Fab5 facility [1] - Daiwa upgraded Huahong's investment rating from "Hold" to "Buy" and raised the target price from HKD 42 to HKD 110 [1]

Core Viewpoint - Daiwa's report indicates that Huahong Semiconductor (01347) reported third-quarter net profit below expectations, influenced by income tax and minority interests, but other key indicators exceeded the firm's expectations [1] Group 1: Financial Performance - The third-quarter net profit was lower than expected due to income tax and minority interests [1] - Other key indicators performed better than Daiwa's expectations [1] Group 2: Market Outlook - The company is expected to benefit from increased downstream demand, enhancing its pricing power and business flexibility [1] - Improvements in product mix, average selling price, and profit margins are anticipated [1] Group 3: Strategic Positioning - The company is positioned as a wafer supplier for AI collaborative chips, which is expected to benefit from the ongoing momentum in AI development next year [1] - The "China for China" strategy from overseas clients and synergies from the acquisition of the Fab5 facility are expected to contribute positively [1] Group 4: Investment Rating - Daiwa upgraded Huahong's investment rating from "Hold" to "Buy" [1] - The target price was raised from HKD 42 to HKD 110 [1]

Investment Rating - The industry investment rating is "Outperform the Market" [1][38] Core Views - Huahong Semiconductor reported impressive results for Q3 2025, achieving record highs in multiple key operational metrics [3] - The semiconductor industry is entering a high prosperity cycle driven by AI demand and domestic substitution [6] - The global semiconductor market is showing strong recovery, with Q3 2025 global sales reaching $208.4 billion, a 15.8% increase quarter-on-quarter and a 25.1% increase year-on-year [6] Summary by Sections Company Performance - Huahong Semiconductor achieved sales revenue of $635.2 million in Q3 2025, marking a historical high with a year-on-year growth of 20.7% and a quarter-on-quarter growth of 12.2% [4] - The gross margin for Q3 improved to 13.5%, exceeding company guidance, with a year-on-year increase of 1.3 percentage points and a quarter-on-quarter increase of 2.6 percentage points [4] - The overall capacity utilization rate reached 109.5% by the end of Q3, up 1.2 percentage points from the previous quarter, indicating full operational capacity [4] Market Trends - The embedded non-volatile memory revenue grew by 20.4% year-on-year, driven by increased demand for MCU products, while standalone non-volatile memory saw a remarkable revenue surge of 106.6% year-on-year [4] - Consumer electronics remained the largest market for Huahong Semiconductor, contributing $407.5 million in sales, accounting for 64.1% of total revenue, with a year-on-year growth of 23.2% [4] - The semiconductor industry is experiencing a significant increase in advanced process demand, with expectations for global advanced process capacity to grow at a CAGR of 14% [6] Investment Recommendations - It is recommended to focus on key companies in the semiconductor manufacturing sector, such as SMIC and Huahong Semiconductor, as well as the storage industry chain [6]

Core Viewpoint - Zhongyin International believes Huahong Semiconductor (01347) will continue to benefit from strong domestic substitution momentum and AI-related demand, maintaining a "Buy" rating and raising the target price from HKD 51.1 to HKD 94.5 [1] Financial Performance - Huahong's Q3 performance was solid, with revenue meeting expectations and a strong gross margin increase of 2.6 percentage points to 13.5%, driven by higher wafer shipment volumes, average selling prices (ASP), and capacity utilization rates exceeding expectations [1] - Despite the strong gross margin, net profit did not meet targets due to high depreciation costs [1] Q4 Outlook - The outlook for Q4 is mixed, with management guiding for Q4 2025 revenue between USD 650 million to USD 660 million, and gross margin expected to remain stable, which is 2 percentage points higher than market consensus [1] - The revenue growth is primarily driven by price increases and demand growth in most sub-segments of discrete components, although discrete components remain a drag on performance [1] Future Estimates - Zhongyin International maintains its revenue estimates for Huahong Semiconductor but raises gross margin forecasts by 50 to 79 basis points due to strong ASP increases expected in the second half of 2025 when capacity is fully loaded [1] - However, price wars in discrete power components, rising engineering costs, and increased depreciation expenses may limit short-term margin growth [1] - The firm has adjusted its earnings per share estimates for 2026 and 2027 upwards by 5% and 4%, respectively [1]

Core Viewpoint - Daiwa's report indicates that Huahong Semiconductor's Q3 net profit fell short of expectations due to income tax and minority interests, but other key indicators exceeded the firm's forecasts [1] Group 1: Financial Performance - Huahong Semiconductor's Q3 net profit was below expectations, influenced by income tax and minority interests [1] - Other key performance indicators were better than Daiwa's expectations [1] Group 2: Market Outlook - The company is expected to benefit from increased downstream demand, enhancing its pricing power and business flexibility [1] - Improvements in product mix, average selling price, and profit margins are anticipated [1] Group 3: Strategic Positioning - As a wafer supplier for AI collaborative chips, Huahong is expected to benefit from the ongoing momentum in AI development next year [1] - The strategy of serving overseas clients with Chinese manufacturing is seen as advantageous for the Chinese market [1] - Synergies from the acquisition of Fab 5 are expected to further enhance the company's position [1] Group 4: Investment Rating - Daiwa upgraded Huahong's investment rating from "Hold" to "Buy" [1] - The target price was raised from HKD 42 to HKD 110 [1]