Jinwu Financial News | Huahong Semiconductor (01,347) fluctuated higher in early trading. As of press time, it reported HK$18.26, up 3.87%, with a turnover of HK$576.64 million.
According to the news, Guoxin Securities said that the company's gross margin for 1Q24 slightly exceeded expectations, and 2Q24 is expected to increase sequentially. The bank is optimistic about the long-term prospects of leading domestic specialty process foundry and maintains a “buy” rating; the bank expects revenue of US$20.38/24.38/US$2,837 billion in 2024-2026 (previous value: 0.68/US$2,490 million), net profit of US$1.35/2.40/US$397 million (previous value: US$0.7/276 million). The current stock price corresponds to 2024 by 0.61 times PB, maintaining a “buy” rating.
Open Source Securities said that considering the increase in the company's capacity utilization rate due to power management and CIS demand, the bank raised the 2024-2025 net profit forecast from 1.01 to 119 million US dollars to 1.52/188 million US dollars, and added the 2026 net profit forecast of 228 million US dollars, corresponding to year-on-year growth rates of -45.9%/24.2%/21.3%, respectively, and the corresponding EPS was 0.11/0.17/0.26 US dollars, respectively. Considering marginal improvements at the company's management level, it is expected that along with the recovery in industry sentiment and improvements in its own profits, it is expected to drive its valuation repair and maintain an “gain” rating.