CMB International: Huahong Semiconductor (01347.HK) gross profit margin exceeded expectations but valuation has already been reflected. Target price adjusted to 68 Hong Kong dollars.

According to the Wisdom Financial APP, CMB International released a research report stating that the gross profit margin of Hua Hong Semiconductor (01347.HK) significantly exceeded expectations, but the valuation has already been reflected. The rating was maintained as "hold" with a target price adjusted to 68 Hong Kong dollars. In the third quarter of 2025, its revenue reached a historical record high of $635 million, a year-on-year increase of 21%, meeting market expectations and company guidance. The gross profit margin recovered to 13.5%, an increase of 1.4 percentage points year-on-year. The net profit for the period was $26 million, slightly lower than market expectations by 5.3%, but the net profit margin improved from 0.7% in the first and second quarters of this year to 4.1%.