Summary of Huahong Semiconductor Conference Call Company Overview - **Company**: Huahong Semiconductor - **Industry**: Semiconductor Manufacturing Key Points and Arguments Production Capacity and Expansion - Huahong's 12-inch wafer fab has reached a monthly capacity of 100,000 wafers, with plans to further increase capacity by the end of 2025. A new wafer fab has started mass production, expected to reach a capacity of 40,000 wafers by mid-2025 and 83,000 wafers by mid-2026, with a total investment of $6.7 billion [2][4][5] - The overall market monthly production capacity is approximately 94,900 wafers, with specific capacities for power semiconductors and various ICs [12] Market Trends and Expectations - Despite a weak power semiconductor market, Huahong anticipates a gradual recovery in the high-voltage sector, with growth expected in embedded systems, power management, RF, and serial flash platforms [2][6] - The mature process market is believed to have bottomed out at the end of last year, with improvements expected to continue this year, particularly in the 8-inch production line [8] - The embedded storage market has shown signs of recovery since Q1 2024, with improving prices, although still below two years ago [15] Automotive Sector Development - Currently, automotive-related sales account for about 5% to 6% of revenue, with expectations to increase to 6% to 8% in the next two to three years, focusing on power devices and MCUs [10][9] - Huahong maintains good relationships with major domestic automotive manufacturers, indicating significant growth potential in the automotive semiconductor market [9] CIS and Product Diversification - In the CIS (Image Sensor) sector, Huahong focuses on high-end products, with a stable monthly production of 10,000 to 15,000 wafers, planning to allocate some new capacity to CIS [11] - The company is also focusing on high-end automotive and mobile phone sectors in its new fab, including CRS and BCD process products [18] Financial Performance and Outlook - The company reported strong performance in Q4 2024, with optimism for Q1 2025 despite seasonal factors and annual maintenance impacts [3] - Depreciation expenses are projected to be around $100 million in August and close to $500 million by December, with new production lines expected to significantly increase sales in the coming years [17] Competitive Position and Market Demand - Huahong has a significant cost advantage in the MCU sector, benefiting from over 20 years of technological accumulation, with a positive outlook for the industry [20][21] - Demand for various products, except for process semiconductors, is meeting expectations, with strong performance in the consumer electronics market and anticipated recovery in the industrial sector [14] Challenges and Opportunities - The SPT (Insulated Gate Bipolar Transistor) market prices have not fully recovered, remaining at low levels, with a potential increase of 20% to 30% once the market normalizes [13] - The power management business is experiencing strong growth, particularly benefiting from the development of AI data servers, with rapid domestic demand expected [16] Collaboration and Future Plans - Huahong is committed to resolving overlapping industrial competition issues as promised during its IPO, with progress being made as planned [7] - The company is focused on enhancing its competitive edge through continuous technological advancements and product optimization [17][19] Additional Important Information - The company is actively involved in the AI edge chip market, integrating with consumer products, and sees significant growth potential in the MCU and power management sectors [19][23] - Current order visibility is good, with sales proceeding as expected for 2025 [24] - Huahong maintains long-term partnerships with major semiconductor distributors, indicating confidence in domestic market success [25]

Group 1 - The semiconductor sector experienced significant gains on the 19th, with companies like Ruvi Optoelectronics hitting a 20% limit up and Qingyi Optoelectronics rising over 14% [1] - Gartner's recent forecast indicates that global semiconductor revenue will reach $626 billion in 2024, representing an 18.1% year-on-year growth [1] - The demand driven by AI is expected to push global semiconductor revenue to $705 billion in 2025, with a year-on-year growth of 12.6% [1] Group 2 - Shanghai Securities suggests that the electronic semiconductor industry may see a comprehensive recovery by 2025, with an accelerated clearing of the competitive landscape and a sustained recovery in industry profitability [1] - The report recommends focusing on semiconductor design stocks that are undervalued with real performance and low PE/PEG ratios, including Zhongke Lanyun and Juxin Technology for AIOT SoC chips, Meixin Sheng and Nanxin Technology for analog chips, and Fengcai Technology and Xinxiangwei for driver chips [1] - For semiconductor equipment and materials, attention is drawn to Huahai Chengke and Changhong Technology, while the folding machine supply chain highlights Tonglian Precision and Jintaiyang as key players [1]

Investment Rating - The investment rating for the company is "Buy" (maintained) [2] Core Insights - The company reported a revenue of USD 539.2 million for Q4 2024, representing a year-over-year increase of 18.4% and a quarter-over-quarter increase of 2.4% [5] - The gross margin for Q4 2024 was 11.4%, up 7.4 percentage points year-over-year but down 0.8 percentage points quarter-over-quarter [5] - The company experienced a loss of USD 25.2 million primarily due to foreign exchange losses [5] - The full-year revenue for 2024 was USD 2.004 billion, with a gross margin of 10.2% and a net profit attributable to shareholders of USD 58.11 million [5] - The company is expected to maintain a production capacity utilization rate close to 100% in 2024, with significant contributions from the Wuxi Fab 9 [9] Financial Data and Profit Forecast - Total revenue projections for the company are as follows: - 2023: 16,232 million - 2024E: 14,899 million - 2025E: 17,954 million - 2026E: 27,850 million - Year-over-year growth rates are projected at -3.3% for 2023, -8.2% for 2024E, 20.5% for 2025E, and 55.1% for 2026E [7] - Net profit attributable to shareholders is forecasted as follows: - 2024E: 418 million - 2025E: 937 million - 2026E: 1,149 million - The gross margin is expected to improve from 11.5% in 2024E to 15.9% in 2026E [7] Operational Highlights - The average selling price (ASP) for wafers in Q4 2024 was USD 444 per piece, with a year-over-year increase of 27.5% and a quarter-over-quarter increase of 1.3% [9] - The overall capacity utilization rate for Q4 2024 was 103.2%, with 8-inch capacity utilization at 105.8% and 12-inch at 100.9% [9] - The company is entering a construction phase for Fab 9, with a capital expenditure of USD 1.506 billion in Q4 2024 [9] - The company anticipates a stable revenue guidance for Q1 2025, with expected sales between USD 530 million and USD 550 million [9] Adjustments and Future Outlook - The profit forecast has been adjusted to reflect a net profit of 418 million for 2024, 937 million for 2025, and 1,149 million for 2026, with corresponding price-to-earnings ratios of 212, 95, and 77 [9] - The report maintains a "Buy" rating based on the company's asset-heavy nature in the wafer foundry segment and reasonable price-to-book ratios [9]

Investment Rating - The report maintains a "Buy" rating for Huahong Semiconductor [3][4] Core Views - Huahong Semiconductor's revenue growth has significantly improved, with a projected 18% year-on-year growth in Q4 2024 and a 17% growth forecast for Q1 2025 [3][4] - The company is expected to benefit from new capacity and a recovery in demand from downstream customers, particularly in the industrial and automotive sectors [3][4] - Despite increased depreciation from new capacity impacting gross margins, the current EV/EBITDA and P/B ratios are attractive at 6.9x and 0.6x respectively [3][4] Financial Performance Summary - Q4 2024 revenue was $539 million, a 2% increase quarter-on-quarter and an 18% increase year-on-year [4][12] - The gross margin for Q4 2024 was 11.4%, with a forecasted gross margin of 10% for Q1 2025, slightly down from 12.2% in Q3 2024 [4][12] - The company expects to expand its capacity to 30,000-40,000 wafers per month by the end of the year, leading to an additional depreciation of approximately $170-180 million [4][12] Earnings Forecast Adjustments - The 2025 revenue forecast has been adjusted to $2.356 billion, reflecting an 18% year-on-year growth [6][14] - The projected net profit for 2025 is $140 million, a significant recovery from a loss in 2024 [6][14] - The basic earnings per share for 2025 is estimated at $0.08, with a gross margin forecast of 11.1% [6][14] Valuation Summary - The target price for Huahong Semiconductor is set at HKD 30.0, representing a potential upside of 17% [3][7] - For the A-share market, the target price is set at RMB 55.0, indicating a potential upside of 18% [3][8] - The report highlights that the current market valuation is below historical averages, suggesting potential for price appreciation [21][20]

Core Viewpoint - The company is focusing on strategic collaborations with key international clients, which is expected to drive future growth [1] Group 1: Strategic Partnerships - The company is collaborating with STMicroelectronics in the 40nm MCU sector, which is anticipated to become a significant business area [1] - The partnership with Infineon is progressing rapidly, with expected results in the near future [1] Group 2: Market Positioning - European companies are advancing the "China for China" strategy, and the company has a strong reputation in Chinese technology and mature processes [1] - The company is making strides towards entering high-end markets [1]

HUA HONG SEMICONDUCTOR LIMITED 华虹半导体有限公司 https://register.vevent.com/register/BIb57631fcc7794af1af448487dae1e61e 01347 — 2025 2 13 — 01347 688347) (" ") 1 5.392 18.4% 2.4% 11.4% 7.4 0.8 2,520 3,540 4,480 5.3 5.5 9% 11% 5.39 11.4% 20.04 10.2% 2024 100% 2024 12 2025 2 PIN PIN PIN 2 12 https://www.huahonggrace.com/c/ir_calendar.php A : 688347 01347 8 + 12 IC + Power Discrete / 8 + 12 8 12 12 www.huahonggrace.com 3 2025 2 13 17:00 / 04:00 https://www.huahonggrace.com/c/ir_calendar.php https://edge.media-server. ...

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 | 截至月份: | 2025年1月31日 | 狀態: | 新提交 | | --- | --- | --- | --- | | 致：香港交易及結算所有限公司 | | | | | 公司名稱: | 華虹半導體有限公司（於香港註冊成立的有限公司） | | | | 呈交日期: | 2025年2月6日 | | | | I. 法定/註冊股本變動 不適用 | | | | FF301 第 1 頁 共 10 頁 v 1.1.1 FF301 II. 已發行股份及/或庫存股份變動 | 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 | | | | 1,310,718,815 | | 0 ...

香港交易及結算所有限公司及香港聯合交易所有限公司對本公告的內容概不負責，對其準確性 或完整性亦不發表任何聲明，並明確表示，概不對因本公告全部或任何部份內容而產生或因倚 賴該等內容而引致的任何損失承擔任何責任。 HUA HONG SEMICONDUCTOR LIMITED 華虹半導體有限公司 （於香港註冊成立之有限公司） （股份代號：01347） 董事會會議日期通知 華虹半導體有限公司（「本公司」）特此通知，本公司謹訂於二零二五年二月十三日 （星期四）上午十時舉行董事會會議，以商討下列事項： 中國上海，二零二五年一月二十四日 於本公告日期，本公司董事分別為： 執行董事 唐均君 （董事會主席） 白鵬 （總裁） 非執行董事 葉峻 孫國棟 周利民 熊承艷 獨立非執行董事 張祖同 王桂壎太平紳士 封松林 1. 考慮及批准刊發本公司及其附屬公司就二零二四年十月一日至十二月三十一 日止三個月期間的第四季度未經審核財務業績；及 2. 商議任何其他事項。 承董事會命 華虹半導體有限公司 董事會主席兼執行董事 唐均君先生 ...

| A 股代码：688347 | 股简称：华虹公司 A | 公告编号：2025-004 | | --- | --- | --- | | 港股代码：01347 | 港股简称：华虹半导体 | | 华虹半导体有限公司 关于召开 2024 年第四季度业绩说明会的预告公告 本公司董事会及全体董事保证本公告内容不存在任何虚假记载、误导性陈述 或者重大遗漏，并对其内容的真实性、准确性和完整性依法承担法律责任。 重要事项提示： 一、说明会类型 华虹半导体有限公司（以下简称"公司"）将于 2025 年 2 月 13 日交易时段后 披露公司 2024 年 第 四 季度业绩，相关内容请详见上海证券交易所网站 （http://www.sse.com.cn/）及香港交易所网站（https://www.hkex.com.hk/）。 为方便广大投资者更全面深入了解公司经营业绩的具体情况，公司拟于 2025 年 2 月 13 日举行"2024 年第四季度业绩说明会"。 二、 说明会召开的时间、地点 说明会将于 2025 年 2 月 13 日（星期四）下午 17:00-18:00 通过网络/电话会议 方式举行。 三、 投资者参加方式 1、网络 ...

香港交易及結算所有限公司及香港聯合交易所有限公司對本公告的內容概不負責，對其準確性 或完整性亦不發表任何聲明，並明確表示，概不就因本公告全部或任何部分內容而產生或因依 賴該等內容而引致的任何損失承擔任何責任。 華虹半導體有限公司 （於香港註冊成立之有限公司） （股份代號：01347） 重續現有持續關連交易 及 修訂二零二四年華虹集團框架協議的採購交易年度上限 茲提述本公司日期為二零二三年十二月二十二日有關二零二四年華虹集團框架 協議、二零二四年華錦物業管理協議及二零二四年華力微潔淨室租賃的公告。 重續現有持續關連交易 HUA HONG SEMICONDUCTOR LIMITED 董事會欣然宣佈，本集團於二零二四年十二月三十日訂立二零二五年華虹集團 框架協議、二零二五年華錦物業管理協議及二零二五年華力微潔淨室租賃，以 重續若干現有持續關連交易。 (a) 二零二五年華虹集團框架協議 二零二四年華虹集團框架協議將於二零二四年十二月三十一日到期。由於 本集團擬於二零二五年繼續(i)向華虹集團公司銷售半導體產品及(ii)自華虹 集團公司採購材料及其他半導體產品，以作為本集團一般業務過程的一部 分，本公司與華虹集團於二零 ...