Investment Rating - The report maintains a "Buy" rating for the company [1][8] Core Insights - The company is expected to achieve revenues of 16.9 billion, 19.8 billion, and 22.9 billion yuan in 2025, 2026, and 2027 respectively, with net profits of 669 million, 1.11 billion, and 1.52 billion yuan [8][10] - The company plans to acquire a 97.4988% stake in Huali Micro, enhancing its 12-inch wafer foundry capacity and creating synergies in technology and production [5][14] - The company has seen a strong performance in its analog and power management platforms, with significant revenue growth driven by demand in AI servers and related applications [4][14] Company Overview - The latest closing price of the company's stock is 83.00 yuan, with a total market capitalization of 143.9 billion yuan [3] - The company has a total share capital of 1.734 billion shares, with 408 million shares in circulation [3] - The company has a debt-to-asset ratio of 28.7% [3] Financial Projections - The company is projected to have a revenue growth rate of 17.56% in 2025, followed by 17.31% in 2026 and 15.35% in 2027 [10][16] - The EBITDA is expected to increase significantly from 3.18 billion yuan in 2024 to 11.12 billion yuan in 2027 [10][16] - The company's net profit margin is projected to improve, with net profit as a percentage of revenue increasing from 2.6% in 2025 to 6.7% in 2027 [16]

Core Viewpoint - The report highlights a significant decline in revenue and net profit for Huahong Semiconductor, attributed to weak demand in automotive, industrial, and new energy sectors, as well as intense market competition affecting sales prices [2][9]. Financial Performance - Revenue for 2024 is reported at 1,438,830.77 million RMB, a decrease of 11.36% compared to the previous year [17]. - Net profit attributable to shareholders decreased by 80.34%, while net profit excluding non-recurring gains and losses fell by 84.80% [2][17]. - Basic earnings per share dropped by 83.21% to 0.22 RMB, and diluted earnings per share decreased by 83.08% to 0.22 RMB [17][18]. - Total assets increased by 15.36% to 8,793,523.15 million RMB [17]. Operational Overview - The company is under continuous supervision by Guotai Junan Securities and Haitong Securities, with a focus on compliance with relevant regulations and effective governance [4][7]. - No major violations or issues requiring rectification were reported during the supervision period [9][17]. Market and Industry Risks - The semiconductor industry faces cyclical demand fluctuations, with potential risks from economic slowdowns and increased competition [10][12]. - The company must continuously innovate and upgrade its technology to maintain competitiveness in a rapidly evolving market [10][12]. - Risks related to supply chain disruptions, particularly from geopolitical tensions affecting key suppliers, could impact production and operational stability [11][14]. Research and Development - The company has focused on enhancing its core competencies in specialized process technologies, with a total of 4,644 patents granted as of December 2024 [18][19]. - R&D efforts are concentrated on differentiated technologies, including embedded non-volatile memory and power devices, to meet market demands [19][20]. Fund Utilization - As of December 31, 2024, the company reported a balance of 696,643.96 million RMB in its fundraising account, with all funds utilized in compliance with regulatory requirements [21][22].

华虹半导体有限公司 HUA HONG SEMICONDUCTOR LIMITED （香港中环夏悫道 12 号美国银行中心 2212 室） 首次公开发行人民币普通股（A 股）股票 并在科创板上市招股说明书 （注册稿） 序。本招股说明书不具有据以发行股票的法律效力，仅供预先披露之用。投 资者应当以正式公告的招股说明书全文作为作出投资决定的依据。 联席保荐机构（主承销商） f 创板公司具有研发投入大、经营风险高、业绩不稳定、退市风险高等特点， 投资者面临较大的市场风险。投资者应充分了解科创板市场的投资风险及本 公司所披露的风险因素，审慎作出投资决定。 中国（上海）自由贸易试验区商城路 618 号 上海市广东路 689 号 本公司的发行上市申请尚需经上海证券交易所和中国证监会履行相应程 本次股票发行后拟在科创板市场上市，该市场具有较高的投资风险。科 华虹半导体有限公司 招股说明书 声 明 中国证监会、交易所对本次发行所作的任何决定或意见，均不表明其对发行 人注册申请文件及所披露信息的真实性、准确性、完整性作出保证，也不表明其 对发行人的盈利能力、投资价值或者对投资者的收益作出实质性判断或保证。任 何与之相反的声明均属 ...