Citigroup: Upgrades Huahong Semiconductor's rating to Buy and raises target price, bullish on the trend of increasing gross profit margin.

Citi reported that Huahong Semiconductor's net profit in the third quarter was slightly lower than market expectations, but due to higher capacity utilization and better average selling prices, its gross margin was better than expected. The company upgraded its rating to a buy and raised its target price by about 133% to HK$105. Citi pointed out that Huahong Semiconductor's gross margin in the third quarter was 13.5%, better than the guidance of 10%-12%.