Core Viewpoint - The report from Credit Lyonnais indicates that Hua Hong Semiconductor (01347.HK) has exceeded expectations in gross margin for Q3 and guidance for Q4, primarily benefiting from demand recovery and product mix upgrades leading to increased average selling prices [1] Group 1: Financial Performance - Hua Hong Semiconductor's gross margin and Q4 guidance are better than expected due to demand recovery and product upgrades [1] - The company is expected to benefit from the semiconductor industry's recovery, product upgrades, capacity expansion, and acquisitions [1] - The forecast for 2025 earnings has been raised due to higher gross margins, with the target price for H-shares increased from HKD 68.4 to HKD 95.6 and for A-shares from RMB 95.1 to RMB 160.3, maintaining an "outperform" rating [1] Group 2: Market Position and Valuation - As of November 7, 2025, Hua Hong Semiconductor's stock closed at HKD 79.45, down 0.81%, with a trading volume of 56.97 million shares and a turnover of HKD 4.511 billion [1] - The stock is primarily rated as a buy by investment banks, with 9 firms issuing buy ratings in the last 90 days, and the average target price in this period is HKD 61.86 [1] - The latest report from Huatai Securities gives a buy rating with a target price of HKD 119 [1] Group 3: Industry Comparison - Hua Hong Semiconductor's market capitalization is HKD 106.38 billion, ranking second in the semiconductor industry [2] - Key performance indicators show that the company's ROE is 0.5%, compared to the industry average of 2.79%, and its gross margin is 10.08%, while the industry average is 26.14% [2] - The company has a net profit margin of -7.68%, significantly better than the industry average of -63.15% [2]
里昂：升华虹半导体(01347.HK)目标价至95.6港元 毛利率展望稳健