Core Viewpoint - Huahong Semiconductor reported strong Q2 2025 results, with revenue and net profit exceeding market expectations, driven by increased wafer shipments and improved capacity utilization [1][2][3] Group 1: Q2 2025 Financial Performance - In Q2 2025, Huahong Semiconductor achieved revenue of $566 million, representing a quarter-over-quarter (QoQ) increase of 4.6% and a year-over-year (YoY) increase of 18.3% [1] - The company reported a net profit of $8 million, with a QoQ increase of 112.1% and a YoY increase of 19.2%, attributed to improved gross margin and reduced financial expenses [1] - Wafer shipments reached 1.305 million equivalent 8-inch wafers, showing a QoQ increase of 6.0% and a YoY increase of 18.0% [1] Group 2: Q3 2025 Guidance - For Q3 2025, Huahong Semiconductor expects revenue between $620 million and $640 million, indicating a QoQ increase of 11.3% and a YoY increase of 19.7%, surpassing Bloomberg consensus of $603 million [2] - The gross margin guidance for Q3 is set at 10%-12%, exceeding the Bloomberg consensus of 9.3%, reflecting positive pricing strategies and capacity expansion [2] - The company anticipates revenue contributions from strategic partnerships and gradual capacity release from Fab 9, which will enhance revenue growth [2] Group 3: Profit Forecast and Investment Rating - Huahong Semiconductor's revenue is projected to grow to $2.417 billion, $3.004 billion, and $3.249 billion for 2025, 2026, and 2027 respectively, with net profits of $87 million, $182 million, and $247 million [3] - The diluted EPS is expected to be $0.05, $0.10, and $0.15 for the same years, with corresponding price-to-book (PB) ratios of 1.47x, 1.43x, and 1.32x [3] - The target price is set at HKD 44.43, maintaining a "Buy" rating based on a 1.5x PB for the 2026 estimated book value per share [3]
华虹半导体(1347.HK)：新厂折旧压力下 二季度毛利率仍超市场预期