HK Stock Market Move | Hua Hong Grace Semiconductor (01347) Falls Over 7% Again, Down Nearly 70% from Year-High; Goldman Sachs Cuts Target Price and Earnings Forecast

Hua Hong Grace Semiconductor (01347) fell over 7% again, down nearly 70% from its year-high of HK$219.6. As of press time, it is down 7.69% at HK$67.85, with a turnover of HK$1.027 billion. Goldman Sachs issued a research report stating that it has cut the target price for Hua Hong Grace Semiconductor by 13.7%, from HK$335 to HK$289, while maintaining a "Buy" rating. The bank said that to reflect the integration of its subsidiary HLMC, it has cut net profit forecasts for fiscal years 2026 to 2027 by 5% and 2%, and raised the 2028 forecast by 3%. The bank expects that investment in the generative AI sector and customer strategies will drive strong market demand for embedded and standalone non-volatile memory and power management ICs. Although increased depreciation and initial integration costs will pressure short-term profitability, the continuous expansion of 12-inch manufacturing capacity is expected to bring economies of scale and enhance operating leverage in the long term.