HK Stock Market Move | HUA HONG SEMI (01347) rose by over 5%. Institutions believe that the company's new 12-inch wafer fab, Fab9A, will reach its maximum capacity this year.

HUA HONG SEMI (01347) rose more than 5%, and as of the time of publication, it had risen by 4.62% to 98.4 Hong Kong dollars, with a trading volume of 321 million Hong Kong dollars. On the news front, HUA HONG SEMI recently announced its performance for the fourth quarter and full year of 2025. CMB International pointed out that the company's management expects revenue in the first quarter of 2026 to be between 650 million and 660 million US dollars, with a gross margin between 13% and 15%. The bank believes that the company performed well in maintaining high capacity utilization in 2025 and accelerating its 12-inch product portfolio, but the current valuation seems high. Lyon believes that HUA HONG SEMI's new 12-inch wafer fab Fab9A will reach its maximum capacity this year, and the capacity increase for Fab9B will also accelerate. It is predicted that capital expenditure in 2026 will slightly decrease compared to the previous year, and will significantly increase in 2027. Sealand stated that HUA HONG SEMI is expected to achieve revenue of 650-660 million US dollars in Q1 2026 (midpoint QoQ -0.7%, YoY +21.1%), with consensus expectations among institutions at 695 million US dollars; gross margin of 13%-15%, with consensus expectations at 13.2%. Driven by the AI wave, the company's power management (BCD) platform may continue to grow rapidly. In addition, there is still room for price increases for the company's 12-inch products in 2026. Fab9B is expected to start moving in equipment in October 2026. In 2027, the company's overall capacity is expected to increase substantially.