Guangda Securities: Huahong Semiconductor (01347.HK) increased prices in 3Q25 and helped improve gross profit rate on rising volume and price, maintaining a "buy" rating.

According to the Wise Financial APP, China Everbright Securities released a research report stating that downstream demand continues to recover, and high capacity utilization rates are driving Huahong Semiconductor (01347.HK) into a price increase cycle. However, considering the company's accelerated production expansion and increased depreciation pressure, the company's net profit forecast for 2025-2027 was adjusted to 70/150/190 million USD (compared to the previous forecast of -4%/+6%/+5%), corresponding to year-on-year growth of +20%/+119%/+23%. The current stock price corresponds to 2.8/2.7xPB for 2025/2026, optimistic about the company's market share growth with self-controllable and localization trends, expansion supporting long-term revenue growth, and the injection of high-quality assets further boosting performance and valuation. Maintain a "buy" rating on Huahong Semiconductor (H).