HK Stock Market Move | HUA HONG SEMI (01347) fell more than 10% in the afternoon, the company is cautiously optimistic about the overall semiconductor demand this year, market is paying attention to the progress of Hua Hong's asset injection.

HUA HONG SEMI (01347) fell sharply by more than 10% in the afternoon, with a 6.88% decrease to HK$38.55 as of the time of writing, with a turnover of HK$38.22 billion. On the news front, HUA HONG SEMI previously released its performance. Huatai pointed out that the company's fourth-quarter revenue increased by 2.4% quarter-on-quarter to US$539 million, with a quarter-on-quarter growth rate close to the company's guidance upper limit; gross margin decreased by -0.8 percentage points to 11.4% quarter-on-quarter, mainly affected by depreciation of new production lines and operating costs. 2024 revenue was US$2.004 billion, a year-on-year decrease of 12.3%, mainly due to a decline in average selling prices as the main drag factor, partially offset by an increase in wafer shipments. The gross margin was 10.2%, a year-on-year decrease of -11.1 percentage points, mainly due to a decrease in average selling prices and an increase in depreciation costs. The company recorded a net loss attributable to the parent company of US$25.2 million, mainly affected by foreign exchange losses. The bank stated that in terms of demand, the company is cautiously optimistic about the overall semiconductor demand in 2025, believing that it is expected to continue benefiting from localized production demand represented by European customers; in terms of technology, the company stated that it will move towards the 28/22nm field in the future, and is optimistic about the new CEO leading Hua Hong to accelerate platform development including advanced processes and specialty processes; the market is currently concerned about Hua Hong's asset-related issues. HUA HONG SEMI's parent company, Huali Microelectronics, owns a 28nm wafer fab (Huahong Fab Five) and a 14nm wafer fab (Huahong Fab Six). According to Hua Hong's prospectus, within three years from the listing date on the Sci-Tech Innovation Board, Huali Microelectronics will be injected into Hua Hong, and it is recommended to pay attention to further developments.