Core Viewpoint - Jianyin International reports that Huahong Semiconductor (01347.HK) faces pressure on gross margin due to increased depreciation from new factories, leading to a conservative outlook on gross margin and a downward revision of earnings forecasts for 2025-2027. However, demand for power devices and MCUs is expected to significantly recover in the second half of the year, driven by a rebound in the industrial and automotive markets. As a result, the valuation target multiple for Huahong Semiconductor has been raised, and the target price for H-shares has been increased by 20%, from HKD 30 to HKD 36, maintaining an "outperform" rating [1]. Group 1 - Huahong Semiconductor's gross margin outlook is conservative due to increased depreciation from new factories [1] - Earnings forecasts for Huahong Semiconductor for 2025-2027 have been revised downward [1] - The average book value per share forecast has been slightly adjusted downwards [1] Group 2 - Demand for power devices and MCUs is expected to see significant recovery in the second half of the year [1] - The rebound in the industrial and automotive markets is a key driver for this demand recovery [1] - The valuation target multiple for Huahong Semiconductor has been increased, leading to a target price adjustment from HKD 30 to HKD 36 [1]