---
title: "Huatai Securities: HUA HONG's price increase and capacity expansion drive growth into the fast lane, target price slightly raised to 121 yuan"
description: "Huatai Securities released a research report, pointing out that Hua Hong Semiconductor is entering a fast growth lane due to price increases and capacity expansion. It is expected that sales revenue w"
type: "news"
locale: "en"
url: "https://longbridge.com/en/news/276028472.md"
published_at: "2026-02-16T03:26:53.000Z"
---

# Huatai Securities: HUA HONG's price increase and capacity expansion drive growth into the fast lane, target price slightly raised to 121 yuan

> Huatai Securities released a research report, pointing out that Hua Hong Semiconductor is entering a fast growth lane due to price increases and capacity expansion. It is expected that sales revenue will reach USD 659.9 million in the fourth quarter of 2025, a year-on-year increase of 22.4%. The gross profit margin is 13%, in line with guidance. The sales revenue guidance for the first quarter of 2026 remains at USD 650 million to USD 660 million, with a gross profit margin between 13% and 15%. The firm raised the target price slightly from HKD 120 to HKD 121, maintaining a "Buy" rating

Huatai Securities published a research report, indicating that Hua Hong Semiconductor (01347.HK) is entering a fast track for growth driven by price increases and capacity expansion. Its sales revenue for the fourth quarter of 2025 is expected to reach USD 659.9 million, a year-on-year increase of 22.4%, hitting the upper end of the company's previous guidance (USD 650 million to USD 660 million).

Hua Hong's gross margin for the last quarter was 13%, up 1.6 percentage points year-on-year, in line with the previous guidance of 12% to 14%. The company guides that sales revenue for the first quarter of 2026 will remain between USD 650 million and USD 660 million, with a gross margin range of 13% to 15%. Looking ahead to 2026, the firm believes that strong demand for analog and power management driven by AI will benefit the company, which is expected to continue its price increase trend due to its premium capabilities in specialty processes, driving ASP recovery; on the scale side, the ramp-up of capacity at Wuxi Fab 9 combined with the potential integration of Huali Fab 5 may enhance the company's capacity base and profits. The firm raised the target price for Hua Hong's H shares from HKD 120 to HKD 121, maintaining a "Buy" rating

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## Related News & Research

| Title | Description | URL |
|-------|-------------|-----|
| Nomura Reaffirms Their Hold Rating on Hua Hong Semiconductor Ltd. (1347) | Nomura has reaffirmed a Hold rating on Hua Hong Semiconductor Ltd. (1347) as of February 12, setting a price target of H | [Link](https://longbridge.com/en/news/275957109.md) |
| Hua Hong reports record Q4 revenue as AI-driven memory crunch fuels price hikes | Hua Hong Semiconductor reported record Q4 revenue of $660 million for 2025, a 22.4% increase year-over-year, driven by h | [Link](https://longbridge.com/en/news/275885635.md) |
| Hua Hong Semiconductor Wins Shareholder Backing for Acquisition and Capital-Raising Plan | Hua Hong Semiconductor Ltd. has received shareholder approval for its acquisition and capital-raising plan during an ext | [Link](https://longbridge.com/en/news/275504444.md) |
| Semiconductor Manufacturing International Weighs Record Results Against Margin Pressure Risks | Semiconductor Manufacturing International Corp (SEHK:981) reported record annual revenue and quarterly profit for 2025,  | [Link](https://longbridge.com/en/news/275899666.md) |
| NAND Reimagined in High-Bandwidth Flash to Complement HBM | In the AI era, SK Hynix has introduced high-bandwidth flash (HBF) technology, which combines multiple layers of NAND die | [Link](https://longbridge.com/en/news/276043847.md) |

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> **Disclaimer**: This article is for reference only and does not constitute any investment advice.