Jinwu Financial News | Huahong Semiconductor (01347) continued to rise. At the end of press release, it rose 3.59% to HK$18.48, with a turnover of HK$154 million.
According to China Post Securities Research and Development, the company is also continuously promoting the construction of a 12-inch production capacity to meet market demand. The global semiconductor market began to pick up in the second half of 2023, and the market is expected to achieve double-digit growth by 2024. Huahong achieved month-on-month increases in capacity utilization, sales revenue, and gross margin in Q1, confirming the overall improvement in market demand for the company's specialty processes. The company is expected to have revenue of 173.68/217.68/26.143 billion yuan in 2024-2026, net profit of 19.69/23.72/28.73 billion yuan. The closing price on May 15, 2024 corresponds to the company's 2024-2026 PE 27/22/18 times and PB 1.17/1.12/1.05 times, respectively, to maintain a “buy” rating.