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]
招银国际：上调华虹半导体(01347)目标价至48港元 降评级至“持有”