Core Viewpoint - 招银国际 maintains a "Hold" rating for Hua Hong Semiconductor (01347), raising the target price from HKD 68 to HKD 80, citing continuous improvement in product mix and scale, but noting that the valuation appears high [1][3] Financial Performance - Hua Hong reported Q4 2025 revenue of USD 660 million, a year-on-year increase of 22.4% and a quarter-on-quarter increase of 3.9%, marking a quarterly record [1][3] - The gross margin for Q4 was 13%, slightly down from 13.5% in Q3, but in line with management's guidance [1][3] - The net profit for Q4 was USD 17 million, a quarter-on-quarter decline of 53.4%, primarily due to rising labor costs [1][3] - For the full year 2025, revenue grew by 20% to USD 2.4 billion, aligning with the bank's expectations and market consensus; the annual gross margin was 11.8%, also in line with expectations, partially offset by higher depreciation expenses [1][3] Future Outlook - Management projects Q1 2026 revenue to be between USD 650 million and USD 660 million, with a gross margin expected to range from 13% to 15% [1][3] - The bank believes the company has performed well in maintaining high capacity utilization and accelerating the 12-inch product mix in 2025, despite the current high valuation [1][3]
招银国际：维持华虹半导体“持有”评级 目标价升至80港元