A Look At Hua Hong Semiconductor (SEHK:1347) Valuation After Q4 Profit Return And New Revenue Guidance

Hua Hong Semiconductor (SEHK:1347) is in focus after reporting fourth quarter 2025 results that moved back to net profitability and issuing first quarter 2026 revenue guidance that gives investors clearer near term expectations. See our latest analysis for Hua Hong Semiconductor. Those results sit against a mixed recent trading pattern, with a 4.51% 1 day share price return and a 37.91% 90 day share price return. The 1 year total shareholder return of 137.39% highlights how strongly sentiment has shifted over a longer stretch. If Hua Hong Semiconductor’s earnings rebound has caught your attention, it could be worth seeing what else is moving in the sector through our screener of 34 AI infrastructure stocks. With Hua Hong Semiconductor back in the black for the quarter and the share price already up strongly over 1 year, the key question is whether the recent earnings and guidance leave the stock undervalued or largely priced for future growth. Most Popular Narrative: 29.6% Overvalued Hua Hong Semiconductor last closed at HK$98.4, while the most followed narrative pegs fair value at HK$75.92, putting the recent rally under a valuation spotlight. Analysts have raised their price target on Hua Hong Semiconductor by roughly HK$2. This reflects a modestly higher fair value estimate as they factor in stronger revenue growth prospects driven by expanding opportunities in artificial intelligence applications, even as profit margin expectations edge slightly lower. Read the complete narrative. Want to see what is behind that higher fair value line? The narrative leans on robust top line expansion, firmer utilization and a premium earnings multiple. Curious which assumptions really carry the weight in this model? Result: Fair Value of HK$75.92 (OVERVALUED) Have a read of the narrative in full and understand what's behind the forecasts. However, the narrative could be challenged if heavy capital spending strains free cash flow or if competitive pressure in mature nodes keeps margins below analyst expectations. Find out about the key risks to this Hua Hong Semiconductor narrative. Next Steps If this all feels like a bullish swing in sentiment, it is worth checking the numbers yourself and deciding how comfortable you are with the setup. To see what has investors optimistic right now, take a closer look at our breakdown of 1 key reward. Looking for more investment ideas? If you are serious about sharpening your portfolio, do not stop at one company. Use the screener to compare ideas side by side and pressure test your convictions. Target stability with 325 resilient stocks with low risk scores that score well on resilience, so you can focus on opportunities without constantly worrying about downside shocks. Hunt for value through screener containing 568 high quality undiscovered gems that many investors may be overlooking despite solid fundamentals and room for a stronger story to build. Strengthen your core holdings using the solid balance sheet and fundamentals stocks screener (366 results) to find companies that pair financial discipline with room for future growth. This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.Valuation is complex, but we're here to simplify it.Discover if Hua Hong Semiconductor might be undervalued or overvalued with our detailed analysis, featuring fair value estimates, potential risks, dividends, insider trades, and its financial condition.Access Free Analysis