CICC released a research report stating that HUA HONG SEMI (01347) reported a 20.7% year-on-year increase in Q3 revenue to $635 million, in line with the previously guided range of $620–640 million. Gross margin rose 1.3 percentage points YoY to 13.5%, exceeding the guidance range of 10%–12%, while net loss stood at $7.19 million and net profit was $25.72 million.

The firm raised HUA HONG SEMI's target price by 120% to HK$110, citing upward market valuation trends and expectations of the company's future platform expansion. It maintained an "Outperform" rating.

CICC noted that HUA HONG SEMI's quarterly revenue met expectations, while gross margin and net profit exceeded forecasts due to price adjustments and product mix optimization. The bank kept its full-year revenue forecast largely unchanged but lowered its 2023 net profit estimate by 27% to $109 million, factoring in increased capacity installation and higher depreciation costs.

However, considering platform growth expectations and product structure improvements, CICC raised its 2024 revenue forecast by 6% to $2.972 billion and lifted its net profit projection by 27% to $216 million.