HK Stock Market Move | HUA HONG SEMI (01347) rose by more than 5%, institutions are optimistic about the sustained growth of the storage industry in the long term. The company expects further price increases for its products this year.

HUA HONG SEMI (01347) rose more than 5%, as of the time of writing, up 4.63% to HK$122 with a trading volume of HK$1.377 billion. In terms of news, recently, HUA HONG SEMI disclosed its Q1 2026 performance. CICC pointed out that HUA HONG SEMI's first quarter performance met expectations, with a gross margin of 13% in Q1 2026, an increase of 3.8 percentage points year-on-year, remaining flat quarter-on-quarter, mainly due to the increase in utilization rate and improvement in prices. Taking into account the price increases of some products, the company's cost reduction measures and the trend of rising structured gross margin, CICC raised Hua Hong's 2026 revenue by 2% to $2.942 billion and simultaneously raised its 2026 profit by 14% to $156 million. In addition, the bank is optimistic about the trend of algorithmic collaboration and the sustainability of the storage boom. Citi states that HUA HONG SEMI's management expects further price increases in their products this year, especially in NOR flash and other platforms where supply is tight, with an average price increase of about 10% to 15%, some products may see even higher increases. In addition, the Wuxi 12-inch wafer fab is expected to reach full capacity in the third quarter of 2026. The bank believes that the expansion of artificial intelligence hardware and the trend of domestic substitution will bring strong order momentum to discrete components and power management products.