Goldman Sachs: SMIC rating raised to "buy", target price increased to HK$68.1.

Goldman Sachs released a report, raising the rating of Huahong Semiconductor from "neutral" to "buy" and increasing the target price by 28% to 68.1 Hong Kong dollars. The reasons for the bullish outlook include the growth opportunities brought by AI applications, price improvement supported by high capacity utilization rates in the past few quarters, expanding demand from domestic customers driving long-term demand, and continued capacity expansion and technology node upgrades. The current price corresponds to a forecasted price-earnings ratio of 43 times in 2026, within the historical valuation range, but considering the company's forecasted compound annual growth rate of 63% in net profit from 2025 to 2029, there is still room for valuation to rise.