华虹半导体（01347）：新产能折旧挤压利润空间，在地化生产增量可期

Investment Rating - The report maintains a "Buy" rating for Huahong Semiconductor [1][30]. Core Views - The new capacity depreciation is squeezing profit margins, but localized production increases are expected [2][3]. - In Q1 2025, Huahong Semiconductor reported revenue of $541 million, a quarter-over-quarter increase of 0.3$4 million, recovering from a net loss of $25 million in Q4 2024, although this represents a year-over-year decline of 88.2$530 million and $550 million, with a Bloomberg consensus estimate of$548 million [6]. - The gross margin was reported at 9.2%, down 2.2 percentage points quarter-over-quarter but up 2.8 percentage points year-over-year, with guidance set between 9% and 11% [6]. - The company anticipates Q2 2025 revenue to be between $550 million and$570 million, with a gross margin forecast of 7% to 9% [6]. - The report projects revenues for 2025, 2026, and 2027 to be $2.279 billion,$2.823 billion, and $3.192 billion respectively, with net profits of$92 million, $183 million, and$271 million respectively [6][8]. Valuation Metrics - The report assigns a target price of HKD 36.84 based on a price-to-book ratio of 1.25x for the estimated book value per share in 2026 [6][30]. - The price-to-earnings ratios for 2025, 2026, and 2027 are projected to be 79.29, 40.05, and 22.47 respectively [8][30].