Semiconductors

Hua Hong

Today’s Key News Recap

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0427 | Dolphin Research Focus: 🐬 Macro/Industry1) Last week, DeepSeek surprise-launched its flagship foundation model DeepSeek-V4 and fully open-sourced it, a key market catalyst. With AI advances as a tailwind, semis extended gains today: the Hong Kong Semiconductor Index jumped 5%+, led by SMIC and Hua Hong Semiconductor.The new model is tuned for domestic compute and pursues a non-CUDA stack, expanding edge-AI use cases and sustaining demand for local chips. Flows continue to pile into themes of self-reliant compute and domestic substitution...

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Tencent Holdings Limited

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DeepSeek-V4 open-sourced, igniting the AI compute supply chain; Tencent's QClaw rolls out a major update | Daily News Recap

Hua Hong Semiconductor Reports Q1 2026 Results: Revenue Up 22%, Announces $6 Billion Expansion for Fab9B

Morgan Stanley raises targets for SMIC and Hua Hong, citing AI-driven mature process shortage

BofA upgrades Hua Hong target price to $63 but reiterates Underperform rating on Q1 results

CLSA raises Huahong Semiconductor target price and valuation multiples, maintains outperform rating

CITIC International and Goldman Sachs Maintain Buy Ratings on Hua Hong Semiconductor with Target Prices of 145 HKD and 152 HKD

Morgan Stanley Maintains Hold Rating on Hua Hong Semiconductor with Target Price of HKD 88.00

Six Brokers Show Mixed Sentiment on Hua Hong Semiconductor Ratings and Price Targets

SMIC and Hua Hong Release 2026 Q1 Earnings, Both Raise Q2 Revenue Guidance

BOC International Maintains Buy Rating on Hua Hong Semiconductor and Raises Target Price to HK$152.4

CLSA Raises Hua Hong Semiconductor Target Price to 147.6 HKD, Citing AI and Domestic Substitution

Hua Hong Semiconductor holds AGM, approves name change to Hua Hong Grace Semiconductor and share buyback plan

Hua Hong Semiconductor Reports Q1 2026 Net Profit of $20.9 Million with 22.2% Revenue Growth

Hua Hong released FY2026 Q1 earnings on May 14 After-Market (BJT), actual revenue CNY 4.625 B (forecast CNY 4.56 B), actual EPS CNY 0.08 (forecast CNY 0.1433)

CLSA Reiterates Outperform Ratings and Target Prices for Semiconductor Companies

Hua Hong to release FY2026 Q1 earnings on May 14 After-Market (BJT), forecast revenue CNY 4.506 B, EPS CNY 0.1433

Morgan Stanley Maintains Huahong Semiconductor 'In-Line' Rating

US Orders Multiple Chip Equipment Companies to Halt Shipments to HuaHong's Factories

CLSA Reports Resurgence in Analog Chip Demand, Upside for SMIC and Hua Hong

HuaHong Semiconductor Reports Revival in Demand for Mature Chip Processes in 2025 Annual Report

HUA HONG SEMI (01347.HK, 688347.SH) Q1 2026 Earnings Presentation

HUA HONG SEMI (01347.HK, 688347.SH) 2024 Q4 Earnings Presentation

BofAS has raised HUA HONG SEMI's target price from HKD61 to HKD63 while maintaining an Underperform rating. The company reported 1Q revenue of USD661 million, flat QoQ but up 22% YoY, with a gross margin of 13%. Despite a forecasted ASP growth of 10% to 15% YoY, the bank sees insufficient earnings recovery potential, projecting gross margins of 18% to 19% in 2H26.

AASTOCKS News

BofAS Raises HUA HONG SEMI  TP to HKD63, Reiterates Underperform

Citi has raised its price targets for SMIC and HUA HONG SEMI, citing benefits from China's localization trend and AI demand. SMIC's 1Q results exceeded expectations, with a positive 2Q revenue growth forecast. HUA HONG SEMI also reported strong growth in the China market. Citi upgraded SMIC's investment rating to Buy and increased its price target to HKD90, while HUA HONG SEMI's target was raised to HKD160. Both companies were added to Citi's 90-Day Short-Term View list.

Citigroup

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Citi Raises SMIC  and HUA HONG SEMI TPs, Positive on 90-Day Performance

SMIC and HUA HONG SEMI saw slight recoveries after opening lower, with SMIC up 0.91% and HUA HONG SEMI up 3.11%. Meanwhile, Trump confirmed that China has not approved the purchase of H200 AI chips, despite earlier reports of US approval for sales to Chinese companies. Trade discussions did not cover chip export controls.

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SMIC, HUA HONG SEMI Tick Up after Opening Lower; Trump: CN Has Not Approved Purchase of H200 Chips

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In a report released on May 14, from Morgan Stanley maintained a Hold rating on Hua Hong Semiconductor Ltd., with a price target of HK$88.00. The company’s shares closed yesterday at HK$127.00.Claim 55% Off TipRanksUnlock hedge fund-level data and powerful investing tools for smarter, sharper decisions Discover top-performing stock ideas and upgrade to a portfolio of market leaders with Smart Investor Picks Currently, the analyst consensus on Hua Hong Semiconductor Ltd. is a Strong Buy with an average price target of HK$116.66.

Tip Ranks

Direxion Semicon Bull 3X

Morgan Stanley Sticks to Their Hold Rating for Hua Hong Semiconductor Ltd. (1347)

Recent ratings and target prices for HUA HONG SEMIfrom six brokers indicate mixed sentiments. BOCI and Daiwa maintain positive outlooks, while CLSA and Nomura express cautious optimism. M Stanley sees weak revenue outlook, and BNP Paribas is underperforming due to geopolitical concerns. Short selling stands at $1.03B with a ratio of 14.617%.

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Brokers Latest Ratings, TPs, Views on HUA HONG SEMI

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Daiwa has reiterated a Buy rating on HUA HONG SEMIafter the company reported a net profit of USD21 million in 1Q26, a 4.6x YoY increase. Revenue rose 22% YoY to USD661 million, driven by increased shipments and average selling prices. Management expects 2Q26 revenue of USD690-700 million and gross margin of 14-16%. The report highlights a global shortage in silicon photonics chip supply and mentions the upcoming completion of the Fab5 acquisition in 2H26, which may lead to more M&A activities in 2027.

ChinaAMC SSE STAR Semiconductor Material & Equipment Thematic ETF

Daiwa Reiterates Buy on HUA HONG SEMI  as 1Q26 Profit Meets Expectations

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BOCI has raised the target price for HUA HONG SEMI from HKD116.5 to HKD152.4, maintaining a Buy rating despite tepid 1Q26 results. Revenue slightly exceeded expectations due to a YoY increase in wafer shipments and average selling price. Management projects 2Q26 revenue between USD690 million and USD700 million, with gross margin expected to expand. The report highlights concerns over domestic AI chip demand amid potential US-China sales of NVIDIA H200 chips, but remains positive on the domestic AI computing supply chain.

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BOCI Raises HUA HONG SEMI  TP to HKD152.4, 1Q26 Results Tepid but Remains Positive on Domestic AI Computing Supply Chain

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Hua Hong Semiconductor's shares fell 1.2% despite a 458% surge in Q1 profit to USD20.9 million, driven by strong demand in the AI-driven chip market. Revenue rose 22% to USD660.9 million. The company anticipates Q2 income between USD690 million and USD700 million. In contrast, rival SMIC reported a 5% profit increase and a 12% revenue rise, with its shares gaining 4.2%. The semiconductor industry is rapidly evolving, with AI playing a crucial role.

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Hua Hong Drops Despite Chinese Chipmaker Reporting Over Five-Fold Surge in First-Quarter Profit

On the morning of May 15th, affected by the general pullback of Chinese concept stocks overnight, the three major indices of the Hong Kong stock market collectively declined, with the Hang Seng Tech Index falling over 1.6%. The market showed a sharp divergence: Semiconductor Manufacturing International Corporation attracted capital against the trend due to its better-than-expected first-quarter performance and strong second-quarter guidance, maintaining its position at the top of the trading volume list; however, third-generation semiconductor stocks saw significant declines. Meanwhile, influenced by the better-than-expected U.S. PPI data and rising interest rate expectations, the strong U.S. dollar continued to suppress commodity pricing, leading to a collective pullback in gold and resource stocks; large-cap tech stocks exhibited mixed performance

Market Pulse

Title: Hong Kong Stock Market Intraday | Three Major Indices Fluctuate Lower, SMIC Rises Against the Trend After Earnings, Gold and Resource Stocks Plunge Collectively

The SSE Composite Index opened down 3 points at 4,174, while the Shenzhen Component Index rose 7 points to 15,753. SMIC and HUA HONG shares both increased by 2.6% following strong first-quarter profit reports. The RMB central parity against the USD was set at 6.8415, down 14 bps MoM. The PBOC conducted RMB500 million of reverse repos, resulting in no net injection or withdrawal for the day.

Hua Hong(688347.SH)

BofAS Raises HUA HONG SEMI TP to HKD63, Reiterates Underperform

Citi Raises SMIC and HUA HONG SEMI TPs, Positive on 90-Day Performance

SMIC, HUA HONG SEMI Tick Up after Opening Lower; Trump: CN Has Not Approved Purchase of H200 Chips

Morgan Stanley Sticks to Their Hold Rating for Hua Hong Semiconductor Ltd. (1347)

Brokers Latest Ratings, TPs, Views on HUA HONG SEMI

Daiwa Reiterates Buy on HUA HONG SEMI as 1Q26 Profit Meets Expectations

BOCI Raises HUA HONG SEMI TP to HKD152.4, 1Q26 Results Tepid but Remains Positive on Domestic AI Computing Supply Chain

Hua Hong Drops Despite Chinese Chipmaker Reporting Over Five-Fold Surge in First-Quarter Profit

Title: Hong Kong Stock Market Intraday | Three Major Indices Fluctuate Lower, SMIC Rises Against the Trend After Earnings, Gold and Resource Stocks Plunge Collectively

SSE Opens Down 3 pts; SMIC and HUA HONG Up 2.6%