Core Viewpoint - The report from CMB International predicts that Huahong Semiconductor (01347) will achieve revenue of $655 million and a gross margin of 14.0% in Q1 2026, with a high certainty of continued capacity expansion in 2027 [1] Group 1: Financial Performance - Q4 2025 revenue reached $659.9 million, a 3.9% increase quarter-on-quarter, nearing the upper limit of previous guidance [1] - Gross margin for Q4 2025 was 13.0%, aligning with the median of the previous guidance range of 12-14%, but down 0.5 percentage points quarter-on-quarter [1] - Management has guided Q1 2026 revenue to be between $650 million and $660 million, with a gross margin forecast of 13-15% [1] Group 2: Capacity Expansion - As of the end of 2025, the capacity is projected to be 486 kWpm equivalent for 8-inch wafers, with an increase of 42 kWpm in 12-inch equivalent capacity from the new factory [2] - The management indicated that the first phase of the new factory is expected to achieve full production in less than two years, with total capacity projected to reach 83 kWpm by the end of 2026 [2] - The total investment for the first phase is $6.7 billion, with approximately $1.3 billion remaining for capacity expansion in 2026 [2] Group 3: Demand Outlook - The capacity utilization rate for 2025 is expected to be at a high of 106.1%, driven by strong demand for AI-related PMIC products and embedded NVM memory related to MCUs [2] - The overall demand is positively influenced by AI, with a spillover effect from the shortage of memory benefiting Huahong's logic and memory foundry business [2]
交银国际：维持华虹半导体(01347)“买入”评级 上调目标价到120港元