Core Viewpoint - Goldman Sachs reports that Huahong Semiconductor (01347), as a leading foundry in China, is expected to benefit directly from the demand recovery trend, with solid gross margin improvement and optimized capacity utilization indicating stronger earnings per share growth potential [1] Group 1: Company Performance - Goldman Sachs maintains a "Buy" rating on Huahong Semiconductor and raises the target price from HKD 117 to HKD 134 [1] - The company is anticipated to remain on an upward trend, supported by factors such as customer preference for local foundries and the increasing market share of fabless companies in the global supply chain [1] - The semiconductor industry's supply-demand relationship in China is improving, contributing to structural growth opportunities [1] Group 2: Capacity and Revenue Outlook - With the next factory advancing to the 28/22nm process node, capacity is expected to continue expanding, indicating a long-term upward trend in average selling prices [1] - Recent signs of price increase momentum have led Goldman Sachs to raise Huahong's earnings forecasts for 2027 to 2029 by 1%, based on a more optimistic revenue outlook [1] - Revenue growth is projected to be stronger due to the demand for specialized technology chips, such as power management ICs and image sensors, benefiting from the growth of AI servers and AI smart edge devices [1] - With sustained high capacity utilization, there is more room for Huahong to optimize its order structure, leading to stronger revenue and profit performance [1]
高盛：上调华虹半导体目标价至134港元 重申“买入”评级