CITIC International raised the target price of Hua Hong Semiconductor to 80 yuan, with a high valuation rating of "Hold."

Zhao Yin International published a research report, stating that HUA HONG SEMI (01347.HK) continues to improve its product portfolio and scale, but its valuation is relatively high. HUA HONG announced its Q4 and full-year results for 2025, driven by high capacity utilization and strong shipment volume, with Q4 revenue growing 22.4% year-on-year and 3.9% quarter-on-quarter to USD 660 million, setting a new quarterly record. The gross margin for Q4 was 13%, lower than the 13.5% in Q3, but in line with management guidance.

Net profit for Q4 was USD 17 million, down 53.4% quarter-on-quarter, mainly due to rising labor costs. Full-year revenue for 2025 grew 20% year-on-year to USD 2.4 billion, in line with the bank's expectations and market consensus; the full-year gross margin was 11.8%, also in line with the bank and market consensus, partially offset by higher depreciation expenses. Looking ahead, management guided Q1 2026 revenue to be between USD 650 million and USD 660 million, with a gross margin between 13% and 15%. The bank believes the company performed well in maintaining high capacity utilization and accelerating its 12-inch product portfolio in 2025, but the current valuation appears high. The rating is maintained at "Hold," with the target price raised from HKD 68 to HKD 80