Hua Hong Semiconductor Ltd. (HK:1347)
:1347
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Hua Hong Semiconductor Ltd.
(1347)
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Rating:54Neutral
Price Target:
HK$110.00
▲(21.55% Upside)
Action:ReiteratedDate:04/25/26
The score is held back primarily by weak financial performance (compressed margins, negative EBIT, and persistently negative free cash flow) and an expensive valuation (very high P/E). These are partly offset by supportive technicals, with the stock trading above key moving averages and momentum indicators remaining generally constructive.
Positive Factors
Specialty foundry focus
Hua Hong’s emphasis on mature and specialty nodes (analog, power, eNVM, mixed-signal) targets steady end markets like industrial and automotive where unit demand and design longevity are higher. That product mix supports more predictable, repeatable wafer programs and reduces reliance on leading-edge cycles, enhancing long-term revenue resilience.
Negative Factors
Compressed gross margins
A sharp decline in gross margin to ~14% reflects either adverse product mix, pricing pressure, or rising unit costs. Sustained margin compression erodes operating leverage, makes it harder to cover fixed fab costs, and threatens long-term profitability unless the firm rebalances mix, improves yields, or raises pricing power versus competitors.
Read all positive and negative factors
Positive Factors
Negative Factors
Specialty foundry focus
Hua Hong’s emphasis on mature and specialty nodes (analog, power, eNVM, mixed-signal) targets steady end markets like industrial and automotive where unit demand and design longevity are higher. That product mix supports more predictable, repeatable wafer programs and reduces reliance on leading-edge cycles, enhancing long-term revenue resilience.
Read all positive factors
Hua Hong Semiconductor Ltd. (1347) vs. iShares MSCI Hong Kong ETF (EWH)
Market Cap
HK$217.65B
Dividend Yield0.23%
Average Volume (3M)54.45M
Price to Earnings (P/E)314.5
Beta (1Y)1.83
Revenue Growth20.29%
EPS Growth-1.94%
CountryHK
Employees7,487
SectorTechnology
Sector Strength88
IndustrySemiconductors
Share Statistics
EPS (TTM)0.08
Shares Outstanding1,329,882,200
10 Day Avg. Volume69,264,425
30 Day Avg. Volume54,449,277
Financial Highlights & Ratios
PEG Ratio-35.43
Price to Book (P/B)2.55
Price to Sales (P/S)6.87
P/FCF Ratio-16.00
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
HK$101.88Price Target Upside12.57% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering15
EPS Forecast (FY)0.11
Revenue Forecast (FY)HK$3.03B
Hua Hong Semiconductor Ltd. Business Overview & Revenue Model
Company Description
Hua Hong Semiconductor Limited, an investment holding company, manufactures and sells semiconductor products. The company provides embedded non-volatile memory, standard logic and mixed-signal, radio frequency, power management integrated circuits...
How the Company Makes Money
Hua Hong Semiconductor primarily makes money by providing wafer foundry services: customers send chip designs (or have designs transferred to Hua Hong’s processes), and the company manufactures silicon wafers containing those chips in its fabs and...
Hua Hong Semiconductor Ltd. Earnings Call Summary
Earnings Call Date:Mar 26, 2026
(Q4-2025)
| % Change Since: |
Next Earnings Date:May 07, 2026
Earnings Call Sentiment Neutral
The call highlights strong top-line momentum (record quarterly revenue, ~20% annual revenue growth), meaningful year‑over‑year gross margin improvement, robust demand across multiple specialty platforms (notably analog/power and embedded NVM), high capacity utilization, and progressing capacity expansion (Fab9, Fab5 acquisition). However, material challenges persist: full‑year loss and modest annual net profit decline, rising operating expenses (labor and depreciation), a significant drop in operating cash flows versus prior year, increased leverage and a materially higher debt ratio, and very large ongoing capex obligations that concentrate execution and financing risk. Management provided constructive near-term guidance but flagged market uncertainties (memory cycle, ASP limitations in 8-inch). Overall, positives in revenue, margins, and expansion are balanced by profitability, cash flow and leverage concerns.Positive Updates
Record Quarterly and Annual Revenue Growth
Q4 2025 revenue reached a record USD 659.9M, up 22.4% year-over-year and 3.9% quarter-over-quarter. Full-year 2025 revenue was USD 2.4021B, up 19.9% year-over-year.
Negative Updates
Full‑Year Loss and Weak Annual Profitability Metrics
Full-year 2025 reported a loss of USD 110.8M (narrowed 21.1% vs. 2024). Net profit attributable to shareholders was USD 54M, down 5.6% year-over-year. Annual ROE remained low at 0.9% (FY) and annualized ROE near 1.2% in quarter commentary.
Read all updates
Q4-2025 Updates
Positive
Negative
Record Quarterly and Annual Revenue Growth
Q4 2025 revenue reached a record USD 659.9M, up 22.4% year-over-year and 3.9% quarter-over-quarter. Full-year 2025 revenue was USD 2.4021B, up 19.9% year-over-year.
Read all positive updates
Company Guidance
Management guided Q1 2026 revenue of $650–$660 million with a projected gross margin of 13%–15%. They reiterated that most remaining cash for the Fab9A 12‑inch project (total project capex $6.7 billion) is still to be spent—slightly over $5 billion has been spent to date with roughly $1.2–$1.3 billion remaining and the bulk of that cash outflow scheduled for 2026 (some into 2027); Fab9B construction is planned to start in March with equipment expected by October and heavier capex in 2027. For context, Q4 capex was $633.5 million (≈$559M for 12‑inch, $74.5M for 8‑inch), full‑year 2025 capex was about $1.8 billion, and 2025 capacity utilization averaged ~106%.Hua Hong Semiconductor Ltd. Financial Statement Overview
Summary
Income Statement
44
Neutral
Balance Sheet
62
Positive
Cash Flow
38
Negative
| Breakdown | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 2.40B | 2.00B | 2.29B | 2.48B | 1.63B |
| Gross Profit | 343.65M | 205.13M | 487.10M | 843.66M | 451.60M |
| EBITDA | 650.22M | 385.01M | 774.51M | 993.26M | 627.56M |
| Net Income | 52.47M | 58.11M | 280.03M | 449.91M | 261.48M |
Balance Sheet | |||||
| Total Assets | 14.33B | 12.42B | 10.94B | 7.06B | 6.20B |
| Cash, Cash Equivalents and Short-Term Investments | 5.05B | 4.46B | 5.59B | 2.01B | 1.61B |
| Total Debt | 3.83B | 2.22B | 2.12B | 1.93B | 1.61B |
| Total Liabilities | 5.30B | 3.51B | 2.93B | 2.92B | 2.52B |
| Stockholders Equity | 6.46B | 6.25B | 6.30B | 3.03B | 2.87B |
Cash Flow | |||||
| Free Cash Flow | -1.03B | -2.32B | -264.91M | -245.32M | -420.44M |
| Operating Cash Flow | 770.43M | 459.50M | 641.70M | 750.87M | 518.47M |
| Investing Cash Flow | -1.89B | -2.67B | -833.31M | -930.16M | -863.06M |
| Financing Cash Flow | 1.46B | 1.15B | 3.78B | 672.18M | 1.01B |
Hua Hong Semiconductor Ltd. Technical Analysis
Positive
90.50
Price Trends
92.96
Negative
88.37
Positive
72.66
Positive
Market Momentum
-0.25
Negative
51.65
Neutral
75.42
Neutral
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 90.5 is above the 20-day moving average (MA) of 87.26, below the 50-day MA of 92.96, and above the 200-day MA of 72.66, indicating a neutral trend. The MACD of -0.25 indicates Negative momentum. The RSI at 51.65 is Neutral, neither overbought nor oversold. The STOCH value of 75.42 is Neutral, 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
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
64 Neutral | HK$2.25B | 11.13 | 6.65% | 6.98% | -7.14% | -59.92% | |
62 Neutral | HK$68.10B | 35.76 | 6.37% | 0.69% | 3.83% | 160.15% | |
61 Neutral | $37.18B | 12.37 | -10.20% | 1.83% | 8.50% | -7.62% | |
55 Neutral | HK$999.10M | 33.80 | 4.98% | ― | -17.88% | -60.44% | |
54 Neutral | HK$217.65B | 314.51 | 0.84% | 0.23% | 20.29% | -1.94% | |
52 Neutral | HK$53.14B | 149.23 | 3.71% | 0.20% | 17.21% | -54.17% | |
43 Neutral | HK$75.49M | -1.89 | -40.33% | ― | -24.59% | 9.82% |
* Technology Sector Average
HK:1347
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Hua Hong Semiconductor Ltd. Corporate Events
Hua Hong Semiconductor Sets 2026 AGM to Approve Results, Payout and Share Mandates
Apr 9, 2026
Hua Hong Semiconductor Limited has called its annual general meeting for 14 May 2026 in Hong Kong, where shareholders will review the audited consolidated financial statements for the year ended 31 December 2025 and vote on a proposed profit distr...
Hua Hong Semiconductor Wins SSE Acceptance for Share-Issuance Acquisition Plan
Mar 31, 2026
Hua Hong Semiconductor Limited has received formal acceptance from the Shanghai Stock Exchange for its application to issue consideration shares in connection with a major connected acquisition and a related fundraising via a non-public issuance o...
Hua Hong Advances Shanghai Approval for Acquisition and RMB Share Issue Without Changing Deal Terms
Mar 31, 2026
Hua Hong Semiconductor has provided updated financial information and reporting materials to the Shanghai Stock Exchange in pursuit of approvals for its previously announced acquisition of a target company and a non-public issuance of RMB shares t...
Hua Hong Semiconductor Publishes Audited 2025 Results and Annual Report
Mar 26, 2026
Hua Hong Semiconductor Limited has released its audited annual results for the year ended 31 December 2025, complying with Hong Kong Stock Exchange disclosure rules and providing full financial statements, governance information, and an ESG report...
Hua Hong Plans Corporate Rebrand to Hua Hong Grace Semiconductor
Mar 26, 2026
Hua Hong Semiconductor Limited plans to change its English name to Hua Hong Grace Semiconductor Limited and adopt a new Chinese name to align more closely with its main operating subsidiary. The move is intended to better reflect the group’s...
Hua Hong Semiconductor Sets March Board Meeting to Approve 2025 Results
Mar 12, 2026
Hua Hong Semiconductor Limited has scheduled a board meeting for 26 March 2026 to review and approve the audited consolidated results for the financial year ended 31 December 2025, a key step in finalizing and releasing its annual performance to t...
Hua Hong Semiconductor Hits Record Q4 Revenue and Accelerates Capacity Expansion
Feb 12, 2026
Hua Hong Semiconductor reported record fourth-quarter 2025 revenue of US$659.9 million, up 22.4% year-on-year, with gross margin at 13.0% and net profit of US$17.5 million, marking a return to profitability versus a loss a year earlier. For full-y...
Hua Hong Semiconductor Wins Shareholder Backing for Acquisition and Capital-Raising Plan
Feb 10, 2026
Hua Hong Semiconductor shareholders have approved all resolutions at an extraordinary general meeting related to a major and connected acquisition, a specific mandate to issue consideration shares, a non-public issuance of RMB shares to raise supp...
Hua Hong Semiconductor Sets February Board Meeting to Review Q4 2025 Results
Jan 29, 2026
Hua Hong Semiconductor Limited has scheduled a board meeting for 12 February 2026 to review and approve the publication of its unaudited financial results for the fourth quarter of 2025, covering the period from 1 October to 31 December 2025. The ...
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.