--- title: "Weekly Recap | HUA HONG GRACE -17.94%, record revenue then soft guidance" type: "News" locale: "en" url: "https://longbridge.com/en/news/296674116.md" description: "HUA HONG GRACE (1347.HK) fell 17.94% this week to close at HK$114.8, sharply underperforming the Hang Seng Index, which gained 2.19%. The stock opened Monday (17 Aug) at HK$140.1 and briefly touched a high of HK$144.5 before turning lower. The sell-off accelerated on Tuesday (18 Aug), with the stock hitting a weekly low of HK$108.3, and it spent the rest of the week consolidating in a narrow HK$109–116 range, closing at HK$114.8 on Thursday (20 Aug). Weekly amplitude reached 25." datetime: "2026-08-22T06:50:33.000Z" locales: - [zh-CN](https://longbridge.com/zh-CN/news/296674116.md) - [en](https://longbridge.com/en/news/296674116.md) - [zh-HK](https://longbridge.com/zh-HK/news/296674116.md) generator: "portal-rs" --- # Weekly Recap | HUA HONG GRACE -17.94%, record revenue then soft guidance ## The Week HUA HONG GRACE (1347.HK) fell 17.94% this week to close at HK$114.8, sharply underperforming the Hang Seng Index, which gained 2.19%. The stock opened Monday (17 Aug) at HK$140.1 and briefly touched a high of HK$144.5 before turning lower. The sell-off accelerated on Tuesday (18 Aug), with the stock hitting a weekly low of HK$108.3, and it spent the rest of the week consolidating in a narrow HK$109–116 range, closing at HK$114.8 on Thursday (20 Aug). Weekly amplitude reached 25.84%, with daily turnover averaging ~44.9m shares — well above normal levels. ## Key Events The week pivoted on a record quarter and a disappointing outlook. On Monday, HUA HONG GRACE reported its highest-ever quarterly revenue, sending shares up nearly 8% intraday; Goldman Sachs lifted its target price to HK$335. The mood soured the next day, when the company’s Q3 guidance came in below market expectations, raising concerns about the pace of growth ahead. The stock dropped 8% on Tuesday and extended losses on Wednesday, at one point sliding over 13%. BofA reiterated its underperform call, flagging depreciation pressure as a key headwind. The split in sentiment was clear: while Citi and Huatai kept their buy ratings, the market voted with a sharp sell-off. The week ended on a positive note — the stock was added to the Hang Seng Index as a new blue-chip constituent, alongside Weichai Power, a change that will take effect later. ## Analyst Ratings A total of 20 brokers cover the stock, with 9 rating it buy, 1 overweight, 7 hold, 2 underweight and 1 sell. The consensus recommendation is buy, with a consensus target price of HK$143.94, implying ~25.4% upside from the latest close of HK$114.8. Individual target prices range from HK$40.99 to HK$334.87 — a wide spread that signals a lack of conviction around the semiconductor cycle and the company’s earnings trajectory. Within the semiconductor sector, HUA HONG GRACE ranks second by the number of covering analysts, reflecting high institutional attention. ## The Week Ahead HUA HONG GRACE will report its 2026 interim results before the market opens on Wednesday, 26 August. This is the first major checkpoint after this week’s sell-off. Investors will be watching for management’s elaboration on the Q3 guidance, along with operational metrics such as utilisation rates, depreciation progress and gross margin trends. Separately, the Hang Seng Index inclusion, announced this week, could trigger pre-positioning by passive funds ahead of the effective date, adding another layer of near-term flow dynamics. ## In Short HUA HONG GRACE was aggressively repriced this week on a split narrative — record revenue versus soft guidance. The stock sold off sharply, underperforming a rising market. While the consensus rating remains buy, the wide target-price range underscores the lack of a settled valuation anchor. At ~247x trailing P/E and ~3.6x book, the stock is priced for growth. The upcoming interim report is now the focal point: the market will look for a clearer earnings path that can close the gap between the bulls and the bears. *This article is generated by LongbridgeAI from market data, for information only and not investment advice.* ### Related Stocks - [01347.HK](https://longbridge.com/en/quote/01347.HK.md) - [688347.CN](https://longbridge.com/en/quote/688347.CN.md) - [SOXL.US](https://longbridge.com/en/quote/SOXL.US.md) ## Related News & Research - [Hua Hong Grace Semiconductor announces extraordinary general meeting](https://longbridge.com/en/news/298017190.md) - [Hua Hong Grace forms Wuxi JV III, invests US$ 1.04 billion in 12-inch wafer fab venture](https://longbridge.com/en/news/297658921.md) - [HUA HONG GRACE Forms JV to Build 12-inch Wafer Production Line with Est. 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