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Hua Hong Semiconductor Ltd. (HK:1347)
:1347
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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 54 (OpenAI - 4o)
Rating:54Neutral
Price Target:
HK$90.00
▲(15.83% Upside)
Hua Hong Semiconductor Ltd. receives a moderate overall stock score due to mixed financial performance and valuation concerns. The most significant factor is the strong technical analysis, indicating bullish momentum, but this is tempered by the high P/E ratio suggesting overvaluation. Financial performance highlights challenges in profitability and cash flow management, which are critical areas for improvement. The lack of earnings call and corporate events data limits additional insights.
Positive Factors
Stable Balance Sheet
A stable balance sheet with manageable leverage indicates financial resilience, allowing the company to navigate economic fluctuations and invest in growth opportunities.
Solid Equity Base
A strong equity base provides a cushion against financial distress and enhances the company's ability to secure financing for future expansion.
Positive Operating Cash Flow
Positive operating cash flow indicates the company's core business operations are generating cash, which is crucial for sustaining operations and funding growth initiatives.
Negative Factors
Profitability Challenges
Ongoing profitability issues can hinder the company's ability to reinvest in its business, affecting long-term growth and competitive positioning.
Negative Free Cash Flow
Negative free cash flow limits the company's ability to fund new projects or return capital to shareholders, potentially impacting future growth and investor confidence.
Low Return on Equity
Low return on equity suggests the company is not effectively utilizing its equity base to generate profits, which could affect investor returns and market perception.

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
45
Neutral
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
60
Neutral
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
40
Negative
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
Neutral
Last Price77.70
Price Trends
50DMA
62.03
Positive
100DMA
48.90
Positive
200DMA
39.93
Positive
Market Momentum
MACD
5.07
Positive
RSI
53.57
Neutral
STOCH
14.29
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:1347, the sentiment is Neutral. The current price of 77.7 is below the 20-day moving average (MA) of 78.41, above the 50-day MA of 62.03, and above the 200-day MA of 39.93, indicating a neutral trend. The MACD of 5.07 indicates Positive momentum. The RSI at 53.57 is Neutral, neither overbought nor oversold. The STOCH value of 14.29 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral 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
65
Neutral
HK$3.17B7.6017.96%5.84%-18.35%-6.00%
64
Neutral
$35.04B143.001.55%0.59%-0.64%-39.74%
64
Neutral
$44.97B72.217.18%0.21%2.61%-32.82%
61
Neutral
$37.18B12.37-10.20%1.83%8.50%-7.62%
61
Neutral
€1.25B24.154.98%-25.16%-51.97%
54
Neutral
HK$155.53B629.570.44%0.21%10.75%-68.85%
45
Neutral
HK$102.30M-41.46%-26.02%-4977.27%
* Technology Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
HK:1347
Hua Hong Semiconductor Ltd.
75.95
53.05
231.66%
HK:0522
ASM Pacific Technology
83.55
-5.64
-6.33%
HK:1385
Shanghai Fudan Microelectronics Group Co
41.68
24.87
147.99%
HK:2878
Solomon Systech (International) Ltd.
0.51
-0.08
-13.56%
HK:8490
Niche-Tech Semiconductor Materials Limited
0.14
-0.09
-39.13%
HK:0085
China Electronics Huada Technology Company Limited
1.54
0.20
14.93%

Hua Hong Semiconductor Ltd. Corporate Events

Hua Hong Semiconductor Updates on Major Acquisition and Fundraising Plans
Oct 16, 2025

Hua Hong Semiconductor Ltd. has announced a monthly update regarding its major and connected transaction, which includes a proposed acquisition and a non-public issuance of RMB shares to raise ancillary funds. The company is currently negotiating the terms of the acquisition and preparing necessary documentation, with a delay in the dispatch of the circular approved until December 31, 2025. The completion of these transactions is contingent upon certain conditions, including shareholder approval, and may not proceed if these conditions are not met.

The most recent analyst rating on (HK:1347) stock is a Hold with a HK$90.00 price target. To see the full list of analyst forecasts on Hua Hong Semiconductor Ltd. stock, see the HK:1347 Stock Forecast page.

Hua Hong Semiconductor Appoints Financial Adviser for Proposed Acquisition
Sep 19, 2025

Hua Hong Semiconductor Limited has appointed Innovax Capital Limited as the Hong Kong Independent Financial Adviser to guide the Independent Board Committee and shareholders on the fairness and reasonableness of a Proposed Acquisition and related mandates. This strategic move is expected to ensure informed decision-making for stakeholders and potentially strengthen the company’s market position.

The most recent analyst rating on (HK:1347) stock is a Buy with a HK$68.10 price target. To see the full list of analyst forecasts on Hua Hong Semiconductor Ltd. stock, see the HK:1347 Stock Forecast page.

Hua Hong Semiconductor Delays Circular Dispatch for Major Acquisition
Sep 19, 2025

Hua Hong Semiconductor Ltd. has announced a delay in the dispatch of a circular related to a major acquisition agreement and a proposed non-public issuance of RMB shares. The delay is due to the need for additional time to finalize terms and prepare necessary documentation, including an asset valuation report and pro-forma financial information. The company has applied for an extension to dispatch the circular by December 31, 2025, and further announcements will be made regarding the timing. The completion of these transactions is contingent upon certain conditions, including shareholder approvals, and may not proceed if these conditions are not met.

The most recent analyst rating on (HK:1347) stock is a Buy with a HK$68.10 price target. To see the full list of analyst forecasts on Hua Hong Semiconductor Ltd. stock, see the HK:1347 Stock Forecast page.

Hua Hong Semiconductor Ltd. Withholds Interim Dividend for H1 2025
Sep 5, 2025

Hua Hong Semiconductor Ltd. announced that its Board does not recommend the payment of an interim dividend for the six-month period ending June 30, 2025. This decision may impact stakeholders’ expectations regarding returns, but all other financial information remains unchanged from the previous announcement.

The most recent analyst rating on (HK:1347) stock is a Hold with a HK$40.00 price target. To see the full list of analyst forecasts on Hua Hong Semiconductor Ltd. stock, see the HK:1347 Stock Forecast page.

Hua Hong Semiconductor Announces Major Acquisition and Fundraising Plans
Aug 31, 2025

Hua Hong Semiconductor Ltd. has announced a major acquisition agreement to purchase 97.4988% of the share capital of a target company, with the remaining shares already owned by its subsidiary, HHGrace. This acquisition involves issuing consideration shares and a cash payment, with the final terms subject to further negotiations and appraisals. Additionally, the company plans a non-public issuance of RMB shares to raise supporting funds, contingent on regulatory approvals and completion of the acquisition. These strategic moves are expected to enhance Hua Hong’s market position and operational capabilities.

The most recent analyst rating on (HK:1347) stock is a Hold with a HK$40.00 price target. To see the full list of analyst forecasts on Hua Hong Semiconductor Ltd. stock, see the HK:1347 Stock Forecast page.

Hua Hong Semiconductor Releases 2025 Interim Results
Aug 28, 2025

Hua Hong Semiconductor Limited announced its unaudited consolidated interim results for the first half of 2025, complying with the Hong Kong Stock Exchange’s listing requirements. The interim report will be available to shareholders and on the company’s website, reflecting its commitment to transparency and regulatory compliance.

The most recent analyst rating on (HK:1347) stock is a Hold with a HK$40.00 price target. To see the full list of analyst forecasts on Hua Hong Semiconductor Ltd. stock, see the HK:1347 Stock Forecast page.

Hua Hong Semiconductor Schedules Board Meeting for Interim Results
Aug 18, 2025

Hua Hong Semiconductor Limited has announced that its board of directors will hold a meeting on August 28, 2025, to consider and approve the publication of the company’s unaudited interim results for the first half of 2025. This meeting is significant as it will provide insights into the company’s financial performance and could impact its market positioning and stakeholder interests.

The most recent analyst rating on (HK:1347) stock is a Hold with a HK$35.40 price target. To see the full list of analyst forecasts on Hua Hong Semiconductor Ltd. stock, see the HK:1347 Stock Forecast page.

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.

The most recent analyst rating on (HK:1347) stock is a Hold with a HK$35.40 price target. To see the full list of analyst forecasts on Hua Hong Semiconductor Ltd. stock, see the HK:1347 Stock Forecast page.

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.

The most recent analyst rating on (HK:1347) stock is a Hold with a HK$35.40 price target. To see the full list of analyst forecasts on Hua Hong Semiconductor Ltd. stock, see the HK:1347 Stock Forecast page.

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.

The most recent analyst rating on (HK:1347) stock is a Hold with a HK$35.40 price target. To see the full list of analyst forecasts on Hua Hong Semiconductor Ltd. stock, see the HK:1347 Stock Forecast page.

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: Oct 14, 2025