Core Insights - The company reported a revenue of $566 million for Q2 2025, representing a year-on-year increase of 18.3% and a quarter-on-quarter increase of 4.6% driven by an increase in wafer delivery volume [1] - Gross margin was 10.9%, exceeding the upper guidance limit due to improved utilization rates, with net profit attributable to shareholders at $8 million, up 19.2% year-on-year and 112.1% quarter-on-quarter [1] - The company provided a positive guidance for Q3 2025, expecting revenue between $620 million and $640 million, with a significant increase in quarterly growth and an improved gross margin of 10-12% [1] Revenue Breakdown - Embedded non-volatile memory revenue increased by 2.9% year-on-year and 8.3% quarter-on-quarter, driven by MCU demand from industrial and automotive clients [1] - Power device revenue grew by 9.4% year-on-year and 2.4% quarter-on-quarter, with growth primarily from super junction and MOSFET products [1] - Analog and power revenue surged by 59.3% year-on-year and 17.8% quarter-on-quarter, mainly driven by high demand for BCD platform power management chips [1] Pricing and Capacity Expansion - The company executed price increases this quarter, with expectations of single-digit price increases in the second half of the year, although the pace of price increases for power device products remains slow [1] - The company adjusted its wafer foundry average prices for 2025 and 2026 to $438 and $474 respectively, with gross margins revised to 12.1% and 16.1% [1] - Capacity expansion is accelerating, with the first batch of capacity expected to reach 80-90% utilization by the end of this year, and full capacity of 83,000 wafers per month planned for mid-2026 [1] Investment Rating and Price Target - The target price has been raised to HKD 54, maintaining a buy rating based on stable demand growth supporting high utilization rates and timely capacity expansion [2] - Adjustments to net profit forecasts for 2025-2027 are made to $9 million, $23 million, and $26 million respectively, reflecting the company's performance recovery certainty and potential asset injection expectations [2] - The target price corresponds to a 1.8 times projected price-to-book ratio for 2025, aligning with the upper limit of the company's price-to-book ratio over the past decade [2]
华虹半导体(1347.HK)：需求景气度延续 运营趋势向好