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G Sachs: HUA HONG SEMI (01347.HK) TP Kept at $117 as 3Q Operating Loss Narrows, Beats
2025-11-07 11:17:39
HUA HONG SEMI (01347.HK)'s 3Q25 revenue was US$635 million, up 21% YoY/ 12% QoQ, in line with guidance, according to Goldman Sachs' research report.

Gross margin was 13.5%, representing improvement from 10.9% in 2Q25 and 12.2% in the same period last year, beating both company guidance and expectations of the broker and the market.

Operating loss narrowed to US$15 million, better than market consensus, while net profit amounted to US$26 million, 13% below Goldman Sachs' forecast and ahead of market consensus, due to higher tax expenses.

Goldman Sachs lowered its 2025 EPS forecast by 2%, mainly reflecting slightly lower-than-expected 3Q25 EPS. The broker lifted its 2026-2029 gross margin forecasts by 0.4/ 0.3/0.2/ 0.1 ppts, and its capital expenditure forecasts for the period by an average of 1-2%.

Therefore, Goldman Sachs kept its target price/ rating at $117/ Buy.
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