Core Viewpoint - Nomura has raised the target price for Huahong Semiconductor (01347.HK) by 116% from HKD 16.4 to HKD 35.4, while maintaining a neutral rating due to persistent fixed cost burdens despite improved pricing conditions [1] Group 1: Financial Performance - Huahong Semiconductor's first-quarter revenue aligned with its guidance, but the gross margin of 9.2% was below expectations, likely due to depreciation from new facilities [1] - Management forecasts a 3.5% quarter-on-quarter revenue increase for the second quarter, driven by sustained demand momentum [1] Group 2: Market Dynamics - Although Huahong Semiconductor anticipates pressure on 8-inch wafer foundry prices (which have not yet decreased), the 12-inch wafer foundry prices are expected to continue rising due to supply-demand imbalances [1] - Nomura views the rising prices of 12-inch wafers as a positive indicator for the overall pricing dynamics of mature node foundries in Asia [1]
野村上调华虹半导体目标价116% 重申中性评级