Investment Rating - The report maintains a "Buy" rating for Huahong Semiconductor (1347.HK) [1][8] Core Insights - The company has seen a positive impact from price increases and product structure optimization, leading to improved gross margins [5] - In Q3 2025, Huahong Semiconductor reported revenues of $635 million, a quarter-over-quarter increase of 12.2% and a year-over-year increase of 20.7% [6] - The gross margin for Q3 2025 was 13.5%, exceeding market expectations, driven by capacity utilization and ASP (Average Selling Price) improvements [5][6] Financial Performance Summary - Q3 2025 revenue: $635 million (QoQ +12.2%, YoY +20.7%) [6] - Q3 2025 net profit: $26 million (QoQ +223.5%, YoY -42.6%) [6] - Q3 2025 wafer shipments: 1.4 million equivalent 8-inch wafers (QoQ +7.3%, YoY +16.7%) [6] - Capacity utilization rate: 109.5% (QoQ +1.2 percentage points, YoY +4.2 percentage points) [6] Future Guidance - For Q4 2025, the company expects revenue between $650 million and $660 million, with a gross margin forecast of 12% to 14% [5] - The anticipated revenue growth is supported by collaborations with strategic customers and the gradual release of capacity from Fab 9A [5] - The company plans to continue its price increase strategy and invest in high-margin technology platforms to enhance product structure [5] Earnings Forecast - Projected revenues for 2025, 2026, and 2027 are $2.4 billion, $3.0 billion, and $3.3 billion respectively [6] - Expected net profits for the same years are $90 million, $194 million, and $263 million respectively [6] - The diluted EPS for 2025, 2026, and 2027 are projected to be $0.05, $0.11, and $0.17 respectively [6]
华虹半导体（01347）：2025Q3财报点评：涨价叠加产品结构优化，毛利率向好