HK Stock Market Move | HUA HONG SEMI (01347) opens nearly 4% lower after earnings report, with third-quarter net profit declining by 42.6% year-on-year, lower than market expectations.

HUA HONG SEMI (01347) opened nearly 4% lower after the performance announcement, falling 3.87% at the time of writing to 77 Hong Kong dollars, with a trading volume of 168.351 million Hong Kong dollars. On the news front, HUA HONG SEMI announced that sales revenue in the third quarter reached a historic high of $635.2 million, an increase of 20.7% year-on-year and 12.2% quarter-on-quarter; the net profit attributable to the parent company was $25.7 million, a decrease of 42.6% year-on-year and an increase of 223.5% quarter-on-quarter. It is expected that sales revenue in the fourth quarter will be between $650 million and $660 million; the gross profit margin is expected to be between 12% and 14%. Citi stated that HUA HONG SEMI's third-quarter net profit was slightly below market expectations, but due to higher capacity utilization and better average selling prices, its gross profit margin exceeded guidance. The company's rating was upgraded to "buy" and the target price was raised by about 133% to 105 Hong Kong dollars.