Jinwu Financial News | According to Guoxin Securities Research Report, Huahong Semiconductor (01347) released unaudited results: 3Q24 achieved sales revenue of 0.5263 billion dollars (YoY -7.4%, QoQ +10.0%), slightly exceeding the guideline (0.5-0.52 billion US dollars), gross margin of 12.2% (YOY-3.9pct, QoQ+1.7pct), slightly exceeding the guideline (10%-12%), and achieved month-on-month growth in revenue, gross margin and capacity utilization. Entering 2024, the company's capacity utilization rate increased quarterly. According to the company's guidelines, 4Q24 sales revenue is expected to be about 0.53-0.54 billion US dollars, maintaining moderate growth, gross margin of about 11%-13%, and continuous optimization of product structure and operating efficiency.
The bank said that according to the terminal market, revenue for consumer electronics, industrial and automotive products increased month-on-month, corresponding to growth rates of 10.9%, 11.9% and 10.9%, and computer revenue decreased by -44.7% month-on-month; by technology platform, analog and power management, logic and RF, and independent non-volatile memory all grew by more than 20% month-on-month, and demand remained strong, with discrete devices growing 7.1% month-on-month, while embedded non-volatile memories fell 3.3% month-on-month; by process technology node, 55nm and 65nm, 0.15um and 0.18um and 0.18um The revenue of 0.25um and above technology nodes increased rapidly from month to month.
The bank is optimistic that the company's specialty process foundry has leading customers and leading process competitiveness. According to the company's guidelines, production capacity forecasts and cost rates are slightly adjusted. The bank expects net profit of 2024-2026 to 0.107/0.17/0.295 billion US dollars (previous value 0.108/0.203/0.419 billion US dollars). The current stock price corresponds to the 2025 PB of 0.77 times, maintaining the “superior to the market” rating.
