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BofAS Keeps Underperform on HUA HONG SEMI; Mgmt Cautiously Optimistic About Next Yr
2025-11-07 11:38:12
According to a report from BofA Securities, HUA HONG SEMI (01347.HK)'s 3Q25 sales rose by 21% YoY or 12% QoQ to USD635 million, aligning with the broker's forecast of USD636 million. Its GPM of 13.5% also exceeded the guidance range of 10-12%.

HUA HONG SEMI expects its 4Q25 sales to grow by 2-4% QoQ to USD650-660 million, with a GPM of 12-14%. It is also confident that the average price of semiconductor wafers will further improve in 4Q25.

For next year's price outlook, however, HUA HONG SEMI's management remains cautiously optimistic due to intense competition. Although improvements in product mix and technological upgrades can support stable wafer prices, further upward potential seems rather limited.

BofA Securities reiterated an Underperform rating on HUA HONG SEMI, with a target price of HKD59.
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