HK Stock Market Move | HUA HONG SEMI (01347) rises by more than 6% again. Goldman Sachs said high capacity utilization supports product portfolio optimization and price increases.

HUA HONG SEMI (01347) rose more than 6% again, up 5.63% to HK$94.75 as of the time of writing, with a turnover of HK$1.209 billion. On the news front, HUA HONG SEMI recently announced its intention to acquire approximately 97.5% of the equity of Huacil Micro at a price of 8.268 billion yuan. Open Source Securities released a research report stating that Huacil Micro is a high-quality wafer foundry asset, and this acquisition is expected to expand the company's long-term production capacity, with an additional 38,000 wafers/month of 65/55nm and 40nm capacity. Goldman Sachs released a research report stating that according to the expectations of the Hua Hong management, the demand for various technology platforms of the company is strong, which will support the maintenance of high capacity utilization rates and the optimization of product mix and price increases. The management will optimize the product mix and pricing, along with continuous cost control measures, maintaining a positive view on the company's future profitability. Fab9B is expected to gradually increase its capacity to 83,000 wafers per month by 2027, and expand 28/22 nanometer capacity between 2027 and 2029. The management stated that the company will increase the proportion of domestic supply chain equipment and materials adoption, which will have a positive impact on profit margins.