Lyon: Ascending Rainbow Semiconductor (01347.HK) target price raised to 95.6 Hong Kong dollars, profit margin outlook stable.

According to the Securities Times APP, a report released by Lyon stated that the gross margin of Huahong Semiconductor (01347.HK) in the third quarter and guidance for the fourth quarter were better than expected, mainly due to the recovery in demand and the upgrade of product portfolio driving up the average selling price. The progress of the capacity expansion of the new 12-inch wafer fab is in line with expectations, and the acquisition of the Huahong Fab5 factory project is also progressing as planned. The bank expects the company to benefit from the recovery of the semiconductor industry, product upgrades, capacity expansion, and acquisitions will enhance the company's capabilities; raising profit forecasts for 2025, the target price for H shares increased from HK$68.4 to HK$95.6, and the target price for A shares of Huahong (688347.SH) increased from RMB 95.1 to RMB 160.3, maintaining an "outperform" rating.