HK Stock Market Move | HUA HONG SEMI (01347) rose nearly 6% again, the acquisition of Huavin Micro is expected to significantly increase the company's performance and total assets.

HUA HONG SEMI (01347) has risen by nearly 6%, with a cumulative increase of over 40% since December 17. As of the time of writing, it has risen by 5.6% to HK$94.3, with a turnover of HK$1.016 billion. In terms of news, HUA HONG SEMI recently announced that it plans to acquire about 97.5% of the equity of Huahong Micro for a transaction price of HK$8.268 billion. After the integration is completed, the company's market share in the global wafer foundry market is expected to further increase, and its supply capacity in the specialty process field may be strengthened. At the same time, fundraising may help the company promote production line upgrades, further expand production, and enhance research and development capabilities. Huatai issued a research report stating that based on data for 2024: In terms of profit, as a high-quality wafer foundry asset, the injection of Huahong Micro may immediately increase performance. The forecasted net profit attributable to mother is expected to increase from HK$380 million to HK$960 million, driving EPS from HK$0.22 to HK$0.50, and the profitability may achieve a leap. In terms of assets, considering accompanying financing, the company will introduce approximately HK$7.6 billion in cash flow, increasing total assets/mother's net assets by 16%/21%, significantly enriching liquidity and helping production line upgrades.