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Citi Upgrades HUA HONG SEMI (01347.HK) to Buy, Elevates TP to $105
2025-11-07 14:40:27
HUA HONG SEMI (01347.HK) announced its 3Q25 results, Citi Research issued a research report saying.

Although net profit slightly missed market consensus, benefitting from higher capacity utilization and higher average selling prices, the Company's gross margin was 13.5%, which is better than the guidance range of 10-12%. HUA HONG SEMI guided 4Q25 revenue to rise by 3% QoQ (the mid-point of guidance of US$650-660 million), with a gross margin of 12-14%.

Although the Company may still face challenges in short-term operating profits, Citi Research expected a structural improvement soon. Due to gradually improving gross margins and higher capacity utilization, the broker raised its 2026/ 2027 earnings forecasts by 87%/ 108%, and elevated its target price from $45 to $105. Citi Research upgraded the stock from Neutral to Buy.
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