Group 1 - Goldman Sachs upgraded Hua Hong Semiconductor (01347) from "Neutral" to "Buy," raising the target price by 28% to HKD 68.1 [1] - The positive outlook is driven by new growth opportunities from AI applications, including data center power management chips and mature process chips for edge AI devices [1] - High capacity utilization in recent quarters has supported price improvements, alongside expanding domestic customer demand and the "Made in China for China" trend, which is expected to drive long-term demand [1] Group 2 - Continuous capacity expansion and technology node upgrades are anticipated, with a projection to introduce 28nm technology by 2027 [1] - The current price corresponds to a forecasted P/E ratio of 43 times for 2026, which is within the historical valuation range, but the company is expected to achieve a compound annual growth rate of 63% in net profit from 2025 to 2029, indicating potential for upward valuation [1] - Goldman Sachs favors companies in the Chinese semiconductor sector that have exposure to AI and advanced technologies, as well as a relatively mild competitive landscape [1]
高盛：升华虹半导体(01347)评级至“买入” 目标价上调至68.1港元