Core Viewpoint - Goldman Sachs has downgraded the earnings per share forecast for Hua Hong Semiconductor (01347) for 2025 by 2%, primarily reflecting slightly lower-than-expected earnings in Q3 [1] Financial Performance - Hua Hong Semiconductor reported Q3 revenue of $635 million, representing a year-on-year growth of 21% and a quarter-on-quarter increase of 12%, aligning with guidance [1] - The gross margin improved to 13.5%, compared to 10.9% in the previous quarter and 12.2% in the same period last year, exceeding both company guidance and market expectations [1] - Operating loss narrowed to $15 million, which was better than market expectations, while net profit reached $26 million, 13% lower than Goldman Sachs' forecast but higher than market expectations due to increased tax expenses [1] Future Guidance - The company has guided for Q4 revenue growth of 2% to 4% quarter-on-quarter, with a gross margin target of 12% to 14%, indicating a continued recovery [1] - The midpoint of the revenue guidance is 7% and 1% lower than Goldman Sachs' and market expectations, respectively, while the midpoint of the gross margin guidance is higher than Goldman Sachs' and market expectations by 1 and 1.7 percentage points [1] Capital Expenditure and Valuation - Capital expenditure forecasts for 2026 to 2029 have been adjusted upwards by an average of 1% to 2% [1] - The target price remains at HKD 117, with a "Buy" rating maintained [1]
高盛：华虹半导体第三季经营亏损收窄兼胜预期 维持目标价117港元