UBS has released a research report announcing an increase in its earnings per share forecast for HUA HONG SEMI (01347) by 57% for 2026, reflecting ongoing improvements in product mix and a more favorable pricing environment. The target price has been raised from HK$80 to HK$104, while maintaining a "Neutral" rating. The report noted that HUA HONG SEMI's fourth-quarter 2025 sales grew 4% quarter-on-quarter to approximately US$660 million, reaching the high end of the company's guidance range of US$650–660 million, driven by increased wafer shipments and higher average selling prices. During the period, the gross margin fell 57 basis points quarter-on-quarter to 13%, landing at the midpoint of the guidance range of 12–14% but below market expectations of 13.8%, primarily due to rising labor costs.