CICC: Raises target price of Huahong Semiconductor (01347.HK) to HK$146, optimistic about the trend of AI-electricity synergy and the storage supercycle.

According to the Zhitong Finance APP, Zhongjin released a research report stating that Huahong Semiconductor (01347.HK) achieved performance in line with expectations in the first quarter of this year. In particular, the gross profit margin was 13%, an increase of 3.8 percentage points year-on-year, remaining flat on a quarterly basis, mainly due to the improvement in utilization rate and price. The company's rating of "outperforming the industry" is maintained due to optimism about the synergy trend of computing and electricity and the sustainability of the storage mega-cycle. The target price is raised by 33% to 146 Hong Kong dollars, corresponding to a 4.8 times 2026 price-to-book ratio and a 4.7 times 2027 price-to-book ratio.