Hua Hong Semiconductor (1347.HK) fell 8% during Hong Kong trading to HK$118.50, tracking a broader chip-sector selloff after the Philadelphia Semiconductor Index dropped nearly 5% overnight.

While the company posted record quarterly revenue of US$717.5 million in Q2, up 26.8% year-on-year with a 16.5% gross margin that beat estimates, its Q3 revenue guidance disappointed — coming in 6% to 11% below consensus. Goldman Sachs noted the Q3 guidance midpoint was 11% below its own estimate and 6% below the Street's, though the gross margin guide of 16%-18% came in above expectations.

Analyst views remain split: Huatai Securities and Goldman Sachs maintain buy ratings with targets of HK$151 and HK$335 respectively, while Citi raised its target to HK$175. Bank of America, however, reiterates a sell rating with a HK$69 target. Southbound flows have been net sellers of the stock recently.