Core Viewpoint - 招银国际 raised the target price for Hua Hong Semiconductor (01347) by 28% from HKD 37.5 to HKD 48, but downgraded the rating to "Hold" [1] Group 1: Financial Performance - Hua Hong Semiconductor reported Q2 2025 revenue of USD 566 million, an increase of 18.3% year-on-year and 4.6% quarter-on-quarter, driven by a rise in wafer shipments (up 18% year-on-year and 6% quarter-on-quarter) [1] - The gross margin improved by 1.6 percentage points to 10.9%, exceeding the company's guidance (7%-9%) and institutional expectations (8.3%) [1] - The net profit margin increased from 0.7% in Q1 2025 to 1.6%, attributed to improved gross margin and other income (such as government subsidies) [1] - Capacity utilization reached 108.3%, up 5.6 percentage points quarter-on-quarter and 10.4 percentage points year-on-year, marking the highest level in 11 quarters, driven by recovering downstream market demand and operational improvements [1] Group 2: Future Outlook - Management expects Q3 2025 revenue to be between USD 620 million and USD 640 million, with a median indicating a year-on-year increase of 19.7% and a quarter-on-quarter increase of 11.3%, showing an accelerating growth trend from Q2 [2] - Gross margin outlook for Q3 and Q4 is expected to remain at 10%-12%, largely stable compared to Q2, primarily due to increased depreciation pressure [2]

华虹半导体今年第二季毛利率超指引上限，单价提升或在第三季之后反映。第二季收入5.66亿美元略超 指引中位数及该行预期，毛利率10.8%超预期和指引上限。管理层指出已在第二季做价格调整，总体涨 价在个位数左右，且会在第三、四季集中体现。指引第三季收入达6.2亿至6.4亿美元，毛利率10至 12%，均高于该行预期。 该行上调华虹半导体2025年底九厂产能预期至每月5万片12英寸产能，并保持之后每六个月增加2.5万 片/月的产能爬坡速率，在2026年第三季完成所有8.3万片规划产能爬坡并贡献收入。 交银国际发布研报称，上调华虹半导体(01347)2025年及2026年收入预测24.1亿及28.7亿美元，前值预测 22.9亿及27.7亿美元。上调2025年毛利率预测到10.8%，前值9.2%，该行升华虹半导体目标价至49港 元，评级"买入"。 ...

该行上调华虹半导体2025年底九厂产能预期至每月5万片12英寸产能，并保持之后每六个月增加2.5万 片/月的产能爬坡速率，在2026年第三季完成所有8.3万片规划产能爬坡并贡献收入。 智通财经APP获悉，交银国际发布研报称，上调华虹半导体(01347)2025年及2026年收入预测24.1亿及 28.7亿美元，前值预测22.9亿及27.7亿美元。上调2025年毛利率预测到10.8%，前值9.2%，该行升华虹半 导体目标价至49港元，评级"买入"。 华虹半导体今年第二季毛利率超指引上限，单价提升或在第三季之后反映。第二季收入5.66亿美元略超 指引中位数及该行预期，毛利率10.8%超预期和指引上限。管理层指出已在第二季做价格调整，总体涨 价在个位数左右，且会在第三、四季集中体现。指引第三季收入达6.2亿至6.4亿美元，毛利率10至 12%，均高于该行预期。 ...

Group 1 - The core viewpoint highlights a collective rise in semiconductor chip concepts, driven by increased capital expenditure from overseas CSP cloud vendors and TSMC's upward revision of its 2025 revenue growth guidance, indicating a sustained demand for computing power [1] - The Shanghai Stock Exchange Sci-Tech Innovation Board 100 Index (000698) rose by 0.56%, with notable increases in constituent stocks such as Shanghai Hejing (688584) up 20.00%, and Shengke Communication (688702) up 16.24% [1] - The overall performance of overseas semiconductor equipment companies in Q2 2025 met expectations, while domestic equipment companies showed positive order intake and performance [1] Group 2 - The Huaxia Sci-Tech 100 ETF (588800) closely tracks the Shanghai Sci-Tech Innovation Board 100 Index, selecting 100 medium-cap and liquid securities from the Sci-Tech Board, focusing on high-growth tech companies [2] - The ETF is the first and only mid-cap style index on the Sci-Tech Board, emphasizing extreme growth styles [2]

Group 1: New IPOs and Companies - A total of 7 new stocks will be available for subscription this week, including 5 from the ChiNext board, 1 from the Sci-Tech Innovation board, and 1 from the Shanghai main board [1] - Huahong Semiconductor, a leading specialty process wafer foundry, is set to launch its IPO on the Sci-Tech Innovation board, aiming to raise 18 billion yuan, marking the largest IPO on the board this year [2][3] - Changhua Chemical specializes in the large-scale production of polyether products, while Jinkai Biotechnology provides CDMO services for small molecule drugs [6][7] - Minbao Optoelectronics focuses on green lighting products, and Huakong Technology is a leader in the global smart hardware ODM sector [8][9] - Mengguli is a major supplier of lithium battery cathode materials, and Blue Arrow Electronics is an important semiconductor packaging and testing company in South China [10][11] Group 2: Financial Performance - Huahong Semiconductor reported revenues of 6.737 billion yuan, 10.63 billion yuan, and 16.786 billion yuan from 2020 to 2022, with net profits of 505 million yuan, 1.66 billion yuan, and 3.009 billion yuan respectively [3] - Changhua Chemical's revenues were 1.879 billion yuan, 3.028 billion yuan, and 2.312 billion yuan from 2020 to 2022, with net profits of 73.06 million yuan, 87.55 million yuan, and 89.38 million yuan [6] - Jinkai Biotechnology achieved revenues of 464 million yuan, 549 million yuan, and 717 million yuan from 2020 to 2022, with net profits of 58.94 million yuan, 84.55 million yuan, and 161.45 million yuan [7] - Minbao Optoelectronics reported revenues of 1.059 billion yuan, 1.497 billion yuan, and 1.465 billion yuan from 2020 to 2022, with net profits of 177 million yuan, 170 million yuan, and 245 million yuan [8] - Huakong Technology's revenues were 59.866 billion yuan, 83.759 billion yuan, and 92.646 billion yuan from 2020 to 2022, with net profits of 2.191 billion yuan, 1.893 billion yuan, and 2.564 billion yuan [9] - Mengguli's revenues were 1.646 billion yuan, 2.827 billion yuan, and 3.234 billion yuan from 2020 to 2022, with net profits of 799.55 million yuan, 1.045 billion yuan, and 923.29 million yuan [10] - Blue Arrow Electronics reported revenues of 571 million yuan, 736 million yuan, and 752 million yuan from 2020 to 2022, with net profits of 184.35 million yuan, 77.27 million yuan, and 71.42 million yuan [11]

Core Insights - Semiconductor foundries, including SMIC and Hua Hong Semiconductor, reported mixed financial results for Q2 2023, reflecting ongoing challenges in the industry due to weak demand for consumer electronics [1][2][3] Financial Performance - SMIC reported Q2 2023 revenue of $1.56 billion, a year-on-year decline of 18%, with a net profit of $403 million, down 21.7% [1] - Hua Hong Semiconductor achieved Q2 2023 revenue of $631.4 million, a year-on-year increase of 1.7%, but net profit fell by 6.4% to $78.5 million [1][3] - SMIC's gross margin was 20.3%, down 19.1 percentage points year-on-year, while Hua Hong's gross margin was 27.7%, down 5.9 percentage points [1][3] Capacity and Utilization - SMIC's revenue from 8-inch and 12-inch wafers accounted for 25.3% and 74.7% of total revenue, respectively, with 8-inch wafer revenue declining by 2.8 percentage points [2] - SMIC's capacity utilization rate was 78.3%, significantly lower than 97.1% in the same period last year but higher than 68.1% in Q1 2023 [2] Market Trends - The semiconductor industry is facing challenges due to weak demand for consumer electronics, with global PC shipments down 15% year-on-year and smartphone sales down 8% [4] - However, there are signs of potential recovery in the second half of the year, driven by new smartphone releases and a gradual recovery in the PC market [4] Future Outlook - Hua Hong Semiconductor expects Q3 2023 revenue between $560 million and $600 million, with a gross margin of 16% to 18%, indicating a decline from Q2 [3] - SMIC anticipates a revenue increase of 3% to 5% in Q3 2023, with a gross margin forecast of 18% to 20% [3] - Both companies are investing in new capacity and technology development to prepare for future growth cycles, with SMIC's capital expenditure reaching $1.732 billion in Q2, up 37.6% [5]

截至发稿，华虹半导体(01347.HK)涨6.13%、宏光半导体(06908.HK)涨5.77%、中芯国际(00981.HK)涨 5.13%。 ...

中芯国际和华虹半导体扩大涨幅。 ...

Investment Rating - The report maintains a "Buy" rating for Huahong Semiconductor [1][10] Core Views - Despite depreciation pressure from new factory investments, the company's gross margin exceeded market expectations in Q2 2025 [2][7] - The company reported Q2 2025 revenue of $566 million, a quarter-over-quarter increase of 4.6% and a year-over-year increase of 18.3% [7][8] - The net profit attributable to shareholders for Q2 2025 was $8 million, reflecting a significant quarter-over-quarter increase of 112.1% and a year-over-year increase of 19.2% [7][8] - The wafer shipment volume reached 1.305 million equivalent eight-inch wafers, with a capacity utilization rate of 108.3% [7][8] Financial Performance Summary - Q2 2025 revenue guidance was set between $550 million and $570 million, with Bloomberg consensus at $563 million [7] - Gross margin for Q2 2025 was reported at 10.9%, with a quarter-over-quarter increase of 1.7 percentage points and a year-over-year increase of 0.4 percentage points [7] - The company expects Q3 2025 revenue to be between $620 million and $640 million, indicating a quarter-over-quarter growth of 11.3% and a year-over-year growth of 19.7% [7][8] - The gross margin guidance for Q3 2025 is projected to be between 10% and 12%, surpassing market expectations [7][8] Future Projections - Revenue projections for Huahong Semiconductor are $2.417 billion in 2025, $3.004 billion in 2026, and $3.249 billion in 2027 [8][9] - Net profit attributable to shareholders is expected to be $87 million in 2025, $182 million in 2026, and $247 million in 2027 [8][9] - The report assigns a target price of HKD 44.43 based on a price-to-book ratio of 1.5x for the estimated book value per share in 2026 [8][9]

Core Viewpoint - Hua Hong Semiconductor (01347) shows strong revenue growth and positive outlook for future performance, driven by recovery in semiconductor demand and stable capacity release from its second 12-inch production line [1] Group 1: Financial Performance - Hua Hong Semiconductor reported Q2 revenue of $566 million, representing an 18% year-over-year increase and a 5% quarter-over-quarter increase, aligning with market expectations [1] - The company has maintained approximately 18% year-over-year revenue growth over the past three quarters, with expectations for gross margin improvement in Q1, Q2, and Q3 of this year [1] Group 2: Future Guidance - Goldman Sachs projects a 10% to 13% quarter-over-quarter revenue growth for Q3, with expected gross margins between 10% and 12%, which is higher than previous quarter's gross margin of 10.9% [1] - The guidance reflects the company's optimistic outlook on continued recovery in demand and the positive impact of its 12-inch capacity expansion on long-term growth [1]