Hua Hong Grace Semiconductor (01347): Third-quarter profit attributable to shareholders was US$123.4 million, up 147.1% year on year; sales revenue hit a new record high.

Hua Hong Grace Semiconductor (01347) announced its third-quarter 2026 results, with sales revenue reaching US$987.1 million, up 19.9% year on year and up 9.9% quarter on quarter, mainly driven by an increase in wafer shipments and higher average selling prices. Gross margin was 24.6%, up 7.6 percentage points year on year and up 4.7 percentage points quarter on quarter, mainly due to higher average selling prices, partially offset by increased depreciation costs. Profit attributable to owners of the parent was US$123.4 million, up 147.1% year on year and up 77.7% quarter on quarter. Basic earnings per share were US$0.066. The announcement said that in the past quarter, Hua Hong Grace Semiconductor achieved sales revenue of US$987.1 million, up 19.9% year on year on a restated comparable basis (excluding Huali Microelectronics, sales revenue was US$803.4 million, above the upper end of the previous quarter's guidance range of US$770 million to US$780 million). Gross margin was 24.6%, up 7.6 percentage points year on year (excluding Huali Microelectronics, gross margin was 19.9%, above the upper end of the previous quarter's guidance range of 16% to 18%). Profit attributable to owners of the parent for the quarter reached US$123.4 million. Sales revenue grew significantly, setting a new record high, with key financial indicators improving markedly both year on year and quarter on quarter. During the quarter, the company's fabs maintained high capacity utilization, with both shipments and average selling prices rising steadily, and continued to advance capacity expansion projects as planned. The integration of Huali Microelectronics has proven to deliver financial gains and operational synergies. Currently, the 12-inch business already accounts for 70.7% of revenue." President Bai continued: "AI-related products continue to drive global semiconductor market demand. The industrial and automotive markets are gradually improving. As a specialty process foundry with a broad technology portfolio, Hua Hong Grace Semiconductor is seeing growing demand for products such as microcontrollers, flash memory, power management and power devices. Even as the company continues to expand capacity, supply in some segments remains correspondingly tight. We expect the trend of rising volumes and prices to continue for some time. The company will continue to focus fully on operational excellence to create value for shareholders."