CICC International: Upgrade Honghao Semiconductor (01347.HK) target price to HK$73, rating lowered to "Neutral"

Wisdom Financial APP learned that Industrial and Commercial Bank International released a research report stating that the acquisition of Huahong Fifth Factory may increase the net asset return of Huahong Semiconductor (01347.HK), and the bank expects this acquisition to be completed in 2026. Therefore, the target price has been raised by 46% to 73 Hong Kong dollars. Considering the level of net asset return, the bank believes that the current valuation of the stock is relatively high, so the rating has been downgraded from "outperform the market" to "neutral". The bank slightly raised its profit forecast for 2025, mainly because the gross profit margin expectations for the third and fourth quarters of 2025 are better than expected. The report states that the group's revenue in the third quarter of 2025 was $635 million, a year-on-year increase of 21% and a quarterly increase of 12%, in line with the general expectations of companies and institutions.