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Hua Hong Semiconductor Ltd. (HK:1347)
:1347
Hong Kong Market
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Hua Hong Semiconductor Ltd. (1347) AI Stock Analysis

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HK:1347

Hua Hong Semiconductor Ltd.

(1347)

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Neutral 51 (OpenAI - 4o)
Rating:51Neutral
Price Target:
HK$43.00
▼(-46.25% Downside)
Hua Hong Semiconductor Ltd.'s overall score is primarily influenced by its strong balance sheet, but offset by declining financial performance and liquidity concerns due to negative cash flow trends. The stock appears overvalued with high P/E ratio and limited dividend yield. Technical indicators suggest a correction may be imminent due to overbought conditions.
Positive Factors
Strong Balance Sheet
A strong balance sheet with increasing equity and manageable debt enhances financial stability, providing a solid foundation for long-term growth.
Prudent Financial Leverage
Prudent financial leverage ensures the company can manage its obligations without overextending, supporting sustainable operations and strategic investments.
Solid Capital Structure
A solid capital structure with a high equity ratio provides resilience against economic fluctuations and supports long-term strategic initiatives.
Negative Factors
Declining Profitability
Declining profitability and shrinking margins indicate operational challenges, which may hinder the company's ability to invest in growth and innovation.
Negative Cash Flow Trend
A negative cash flow trend can strain liquidity and limit the company's ability to fund operations and strategic initiatives, posing a risk to financial health.
Reduced Margins
Reduced margins reflect cost pressures and competitive challenges, potentially impacting the company's ability to maintain profitability and invest in growth.

Hua Hong Semiconductor Ltd. (1347) vs. iShares MSCI Hong Kong ETF (EWH)

Hua Hong Semiconductor Ltd. Business Overview & Revenue Model

Company DescriptionHua Hong Semiconductor Ltd. (1347) is a leading pure-play foundry service provider headquartered in China, focusing on specialty process platforms including embedded non-volatile memory, power discrete, and analog & power management. The company serves a broad range of markets such as industrial, consumer electronics, and telecommunications.
How the Company Makes MoneyHua Hong Semiconductor Ltd. generates revenue primarily through its semiconductor manufacturing services. The company operates on a foundry model, where it manufactures integrated circuits (ICs) on behalf of its clients, which include fabless semiconductor companies. Revenue streams include wafer fabrication services, where clients pay for the production of semiconductor wafers, and technology licensing, where Hua Hong licenses its proprietary technologies. Strategic partnerships and collaborations with technology firms and research institutions also contribute to its revenue, allowing the company to enhance its manufacturing capabilities and expand its customer base.

Hua Hong Semiconductor Ltd. Financial Statement Overview

Summary
Hua Hong Semiconductor Ltd. demonstrates a robust balance sheet with manageable debt levels and a strong equity base. However, the income statement reflects declining profitability, with reduced margins and revenue. Additionally, negative free cash flow trends pose potential liquidity challenges, requiring improvements in operational efficiency and revenue generation.
Income Statement
65
Positive
The income statement shows a decline in total revenue from 2022 to 2024, with a significant drop in gross profit margin from 34.07% in 2022 to 10.24% in 2024. The net profit margin also decreased from 18.17% in 2022 to 2.90% in 2024. This suggests a challenging environment with decreasing profitability, although the company has maintained positive net income.
Balance Sheet
78
Positive
The balance sheet is strong with a consistent increase in stockholders' equity from 2021 to 2024. The debt-to-equity ratio is manageable, showing prudent financial leverage. The equity ratio has improved, indicating a solid capital structure with 50.32% equity in total assets for 2024, enhancing financial stability.
Cash Flow
55
Neutral
Cash flow analysis reveals a negative free cash flow trend, with free cash flow worsening from -245 million in 2022 to -2.3 billion in 2024. This is concerning given the substantial capital expenditures. The operating cash flow has declined, which may affect liquidity if this trend continues.
BreakdownTTMDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue2.18B2.00B2.29B2.48B1.63B961.28M
Gross Profit237.38M205.13M487.10M843.66M451.60M234.79M
EBITDA498.43M385.01M774.51M993.26M627.56M255.40M
Net Income29.99M58.11M280.03M449.91M261.48M99.44M
Balance Sheet
Total Assets12.24B12.42B10.94B7.06B6.20B4.57B
Cash, Cash Equivalents and Short-Term Investments3.85B4.46B5.59B2.01B1.61B922.79M
Total Debt2.30B2.22B2.12B1.93B1.61B587.82M
Total Liabilities3.36B3.51B2.93B2.92B2.52B1.21B
Stockholders Equity6.30B6.25B6.30B3.03B2.87B2.53B
Cash Flow
Free Cash Flow-2.65B-2.32B-264.91M-245.32M-420.44M-818.15M
Operating Cash Flow548.13M459.50M641.70M750.87M518.47M269.11M
Investing Cash Flow-3.09B-2.67B-833.31M-930.16M-863.06M-405.66M
Financing Cash Flow-21.85M1.15B3.78B672.18M1.01B540.43M

Hua Hong Semiconductor Ltd. Technical Analysis

Technical Analysis Sentiment
Positive
Last Price80.00
Price Trends
50DMA
50.56
Positive
100DMA
41.68
Positive
200DMA
35.61
Positive
Market Momentum
MACD
6.46
Negative
RSI
84.53
Negative
STOCH
90.84
Negative
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:1347, the sentiment is Positive. The current price of 80 is above the 20-day moving average (MA) of 56.68, above the 50-day MA of 50.56, and above the 200-day MA of 35.61, indicating a bullish trend. The MACD of 6.46 indicates Negative momentum. The RSI at 84.53 is Negative, neither overbought nor oversold. The STOCH value of 90.84 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for HK:1347.

Hua Hong Semiconductor Ltd. Peers Comparison

Overall Rating
UnderperformOutperform
Sector (61)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
77
Outperform
HK$52.07B82.889.71%0.19%2.33%-32.82%
66
Neutral
HK$34.15B139.352.27%0.62%-0.64%-39.74%
65
Neutral
HK$3.37B8.0924.05%5.42%-18.35%-6.00%
61
Neutral
HK$1.47B28.507.39%-25.16%-51.97%
51
Neutral
HK$157.13B332.920.47%0.21%
48
Neutral
HK$115.00M-1.52-24.97%-26.02%-4977.27%
61
Neutral
$37.18B12.37-10.20%1.83%8.50%-7.62%
* Technology Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
HK:1347
Hua Hong Semiconductor Ltd.
80.00
58.40
270.37%
HK:0522
ASM Pacific Technology
82.05
-15.76
-16.11%
HK:1385
Shanghai Fudan Microelectronics Group Co
45.52
29.43
182.93%
HK:2878
Solomon Systech (International) Ltd.
0.59
0.18
45.68%
HK:8490
Niche-Tech Semiconductor Materials Limited
0.16
0.02
14.29%
HK:0085
China Electronics Huada Technology Company Limited
1.66
0.47
39.50%

Hua Hong Semiconductor Ltd. Corporate Events

Hua Hong Semiconductor Announces Trading Halt Amid Potential Acquisition
Aug 18, 2025

Hua Hong Semiconductor Ltd. announced a trading halt of its RMB shares on the Shanghai Stock Exchange’s STAR Board due to a potential acquisition of equity interests in Shanghai Huali Microelectronics Corporation. The trading halt, effective from August 18, 2025, is expected to last no more than 10 trading days, pending further announcements. The transaction is subject to various approvals and carries uncertainty regarding its implementation, urging investors to remain cautious.

Hua Hong Semiconductor Reports Strong Q2 2025 Results Amidst Market Fluctuations
Aug 7, 2025

Hua Hong Semiconductor Limited reported its second quarter 2025 results, showing a revenue increase of 18.3% year-over-year to US$566.1 million and a net profit rise of 19.2% over the same period. The company achieved record capacity utilization and improved operational metrics amidst global trade fluctuations, while continuing to expand its product portfolio and ramp up its new 12-inch production line in Wuxi.

Hua Hong Semiconductor Schedules Board Meeting for Q2 Financial Review
Jul 24, 2025

Hua Hong Semiconductor Ltd. has announced a board meeting scheduled for August 7, 2025, to review and approve the company’s unaudited financial results for the second quarter of 2025. This meeting is significant as it will provide insights into the company’s financial health and operational performance, potentially impacting its market positioning and stakeholder confidence.

Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.Date of analysis: Jul 26, 2025