Hua Hong Semiconductor Ltd. (1347) AI Stock Analysis

• Market Cap: HK$166.11B
• Dividend Yield: 0.19%
• Average Volume (3M): 54.45M
• Price to Earnings (P/E): 684.4
• Beta (1Y): 1.66
• Revenue Growth: 10.75%
• EPS Growth: -68.85%
• Country: HK
• Employees: 7,487
• Sector: Technology
• Sector Strength: 88
• Industry: Semiconductors
• EPS (TTM): 0.04
• Shares Outstanding: 1,327,704,300
• 10 Day Avg. Volume: 69,264,425
• 30 Day Avg. Volume: 54,449,277
• PEG Ratio: -1.00
• Price to Book (P/B): 0.77
• Price to Sales (P/S): 2.39
• P/FCF Ratio: -2.06
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: HK$57.91
• Price Target Upside: -32.78% Downside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 16

• Rating: 54 Neutral
• Price Target: HK$90.00 ▲(4.47% Upside)

Hua Hong Semiconductor Ltd. receives an overall stock score of 54, primarily driven by its stable balance sheet and positive technical indicators. However, significant challenges in profitability, cash flow management, and a high P/E ratio weigh down the score. The stock's bullish technical momentum is a positive factor, but the valuation concerns and financial performance issues highlight the need for caution.

Positive Factors

Stable Balance Sheet

A stable balance sheet with manageable leverage indicates financial resilience, allowing the company to navigate economic fluctuations and invest in growth opportunities.

Solid Equity Base

A strong equity base provides a cushion against financial distress and enhances the company's ability to secure financing for future expansion.

Positive Operating Cash Flow

Positive operating cash flow indicates the company's core business operations are generating cash, which is crucial for sustaining operations and funding growth initiatives.

Negative Factors

Profitability Challenges

Ongoing profitability issues can hinder the company's ability to reinvest in its business, affecting long-term growth and competitive positioning.

Negative Free Cash Flow

Negative free cash flow limits the company's ability to fund new projects or return capital to shareholders, potentially impacting future growth and investor confidence.

Low Return on Equity

Low return on equity suggests the company is not effectively utilizing its equity base to generate profits, which could affect investor returns and market perception.

Hua Hong Semiconductor Ltd. Business Overview & Revenue Model

Company Description

Hua Hong Semiconductor Limited, an investment holding company, manufactures and sells semiconductor products. The company provides embedded non-volatile memory, standard logic and mixed-signal, radio frequency, power management integrated circuits, power discrete, and automotive solutions. It also offers foundry services; and design services comprising standard and customized IP development, full-custom layout design, and customer-specific integrated solutions, as well as design support and tape out services. In addition, the company provides multi-project wafer services; mask making services; and backend services, such as in-house testing, backside processing and dicing, and backend turnkey services, as well as wafer probing, assembly, and testing. Its products are used in consumer electronics, communications, computing, industrial, and automotive markets in the People's Republic of China, North America, Europe, Japan, and other Asian countries. The company was founded in 1997 and is headquartered in Shanghai, the People's Republic of China. Hua Hong Semiconductor Limited is a subsidiary of Shanghai Alliance Investment Ltd.

How the Company Makes Money

Hua Hong Semiconductor generates revenue primarily through its foundry services, which involve manufacturing custom silicon wafers for clients in various industries. The company's key revenue streams include the production of analog, mixed-signal, and power semiconductor devices, which are crucial for modern electronic products. Additionally, Hua Hong Semiconductor benefits from long-term contracts with major technology firms, providing a stable income base. The company also engages in partnerships with tech companies for joint development projects, enhancing its technological capabilities and market reach. Factors contributing to its earnings include the growing demand for semiconductors driven by trends like IoT, automotive electronics, and 5G technology, as well as its ability to maintain competitive pricing and high production efficiency.

Hua Hong Semiconductor Ltd. Financial Statement Overview

Summary

Hua Hong Semiconductor Ltd. faces significant challenges in profitability and cash flow management, despite a stable balance sheet. The income statement shows modest revenue growth but struggles with profitability, as indicated by a negative EBIT margin and low net profit margin. The balance sheet is stable with manageable debt levels, but low return on equity suggests inefficiency. Cash flow analysis reveals negative free cash flow and limited capacity to cover net income, highlighting areas for improvement.

Income Statement

Hua Hong Semiconductor Ltd. shows a mixed performance in its income statement. The TTM data indicates a modest revenue growth rate of 4.78%, but the company is struggling with profitability, as evidenced by a negative EBIT margin of -7.77%. The net profit margin is low at 2.90%, reflecting challenges in converting revenue into profit. Historical data shows declining gross profit margins and fluctuating revenue growth, indicating potential instability in revenue streams.

Balance Sheet

The balance sheet presents a stable financial structure with a moderate debt-to-equity ratio of 0.36, suggesting manageable leverage. However, the return on equity is low at 0.47%, indicating limited efficiency in generating returns from equity. The equity ratio stands at 51.50%, showing a solid equity base relative to total assets, which is a positive sign of financial stability.

Cash Flow

Cash flow analysis reveals significant challenges, with negative free cash flow and a concerning free cash flow to net income ratio of -4.84. Although operating cash flow is positive, the coverage ratio of 0.35 suggests limited capacity to cover net income. The free cash flow growth rate is slightly positive at 5.30% TTM, but historical volatility in free cash flow growth indicates potential cash flow management issues.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	2.18B	2.00B	2.29B	2.48B	1.63B	961.28M
Gross Profit	237.38M	205.13M	487.10M	843.66M	451.60M	234.79M
EBITDA	498.43M	385.01M	774.51M	993.26M	627.56M	255.40M
Net Income	29.99M	58.11M	280.03M	449.91M	261.48M	99.44M
Balance Sheet
Total Assets	12.24B	12.42B	10.94B	7.06B	6.20B	4.57B
Cash, Cash Equivalents and Short-Term Investments	3.85B	4.46B	5.59B	2.01B	1.61B	922.79M
Total Debt	2.30B	2.22B	2.12B	1.93B	1.61B	587.82M
Total Liabilities	3.36B	3.51B	2.93B	2.92B	2.52B	1.21B
Stockholders Equity	6.30B	6.25B	6.30B	3.03B	2.87B	2.53B
Cash Flow
Free Cash Flow	-2.65B	-2.32B	-264.91M	-245.32M	-420.44M	-818.15M
Operating Cash Flow	548.13M	459.50M	641.70M	750.87M	518.47M	269.11M
Investing Cash Flow	-3.09B	-2.67B	-833.31M	-930.16M	-863.06M	-405.66M
Financing Cash Flow	-21.85M	1.15B	3.78B	672.18M	1.01B	540.43M

Hua Hong Semiconductor Ltd. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 86.15
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:1347, the sentiment is Positive. The current price of 86.15 is above the 20-day moving average (MA) of 82.55, above the 50-day MA of 65.50, and above the 200-day MA of 41.48, indicating a bullish trend. The MACD of 4.91 indicates Positive momentum. The RSI at 61.86 is Neutral, neither overbought nor oversold. The STOCH value of 85.16 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for HK:1347.

Hua Hong Semiconductor Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
1385	―	$44.97B	72.21	7.85%	0.19%	12.62%	-4.75%
0522	―	$35.04B	143.00	1.55%	0.61%	-0.64%	-39.74%
0085	―	HK$3.21B	7.70	17.96%	5.81%	-18.35%	-6.00%
Sector *	―	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
2878	―	€1.25B	24.15	4.98%	―	-25.16%	-51.97%
1347	―	HK$166.11B	684.39	0.44%	0.19%	10.75%	-68.85%
8490	―	HK$95.95M	―	-41.46%	―	-26.02%	-4977.27%

Hua Hong Semiconductor Ltd. Corporate Events

Hua Hong Semiconductor to Review Q3 Financials in Upcoming Board Meeting

Hua Hong Semiconductor Limited has announced that its board of directors will hold a meeting on November 6, 2025, to review and approve the company’s unaudited financial results for the third quarter of 2025. This meeting is crucial as it will provide insights into the company’s financial performance and potentially impact its market positioning and stakeholder confidence.

The most recent analyst rating on (HK:1347) stock is a Hold with a HK$90.00 price target. To see the full list of analyst forecasts on Hua Hong Semiconductor Ltd. stock, see the HK:1347 Stock Forecast page.

Hua Hong Semiconductor Updates on Major Acquisition and Fundraising Plans

Hua Hong Semiconductor Ltd. has announced a monthly update regarding its major and connected transaction, which includes a proposed acquisition and a non-public issuance of RMB shares to raise ancillary funds. The company is currently negotiating the terms of the acquisition and preparing necessary documentation, with a delay in the dispatch of the circular approved until December 31, 2025. The completion of these transactions is contingent upon certain conditions, including shareholder approval, and may not proceed if these conditions are not met.

The most recent analyst rating on (HK:1347) stock is a Hold with a HK$90.00 price target. To see the full list of analyst forecasts on Hua Hong Semiconductor Ltd. stock, see the HK:1347 Stock Forecast page.

Hua Hong Semiconductor Appoints Financial Adviser for Proposed Acquisition

Hua Hong Semiconductor Limited has appointed Innovax Capital Limited as the Hong Kong Independent Financial Adviser to guide the Independent Board Committee and shareholders on the fairness and reasonableness of a Proposed Acquisition and related mandates. This strategic move is expected to ensure informed decision-making for stakeholders and potentially strengthen the company’s market position.

The most recent analyst rating on (HK:1347) stock is a Buy with a HK$68.10 price target. To see the full list of analyst forecasts on Hua Hong Semiconductor Ltd. stock, see the HK:1347 Stock Forecast page.

Hua Hong Semiconductor Delays Circular Dispatch for Major Acquisition

Hua Hong Semiconductor Ltd. has announced a delay in the dispatch of a circular related to a major acquisition agreement and a proposed non-public issuance of RMB shares. The delay is due to the need for additional time to finalize terms and prepare necessary documentation, including an asset valuation report and pro-forma financial information. The company has applied for an extension to dispatch the circular by December 31, 2025, and further announcements will be made regarding the timing. The completion of these transactions is contingent upon certain conditions, including shareholder approvals, and may not proceed if these conditions are not met.

The most recent analyst rating on (HK:1347) stock is a Buy with a HK$68.10 price target. To see the full list of analyst forecasts on Hua Hong Semiconductor Ltd. stock, see the HK:1347 Stock Forecast page.

Hua Hong Semiconductor Ltd. Withholds Interim Dividend for H1 2025

Hua Hong Semiconductor Ltd. announced that its Board does not recommend the payment of an interim dividend for the six-month period ending June 30, 2025. This decision may impact stakeholders’ expectations regarding returns, but all other financial information remains unchanged from the previous announcement.

The most recent analyst rating on (HK:1347) stock is a Hold with a HK$40.00 price target. To see the full list of analyst forecasts on Hua Hong Semiconductor Ltd. stock, see the HK:1347 Stock Forecast page.

Hua Hong Semiconductor Announces Major Acquisition and Fundraising Plans

Hua Hong Semiconductor Ltd. has announced a major acquisition agreement to purchase 97.4988% of the share capital of a target company, with the remaining shares already owned by its subsidiary, HHGrace. This acquisition involves issuing consideration shares and a cash payment, with the final terms subject to further negotiations and appraisals. Additionally, the company plans a non-public issuance of RMB shares to raise supporting funds, contingent on regulatory approvals and completion of the acquisition. These strategic moves are expected to enhance Hua Hong’s market position and operational capabilities.

The most recent analyst rating on (HK:1347) stock is a Hold with a HK$40.00 price target. To see the full list of analyst forecasts on Hua Hong Semiconductor Ltd. stock, see the HK:1347 Stock Forecast page.

Hua Hong Semiconductor Releases 2025 Interim Results

Hua Hong Semiconductor Limited announced its unaudited consolidated interim results for the first half of 2025, complying with the Hong Kong Stock Exchange’s listing requirements. The interim report will be available to shareholders and on the company’s website, reflecting its commitment to transparency and regulatory compliance.

The most recent analyst rating on (HK:1347) stock is a Hold with a HK$40.00 price target. To see the full list of analyst forecasts on Hua Hong Semiconductor Ltd. stock, see the HK:1347 Stock Forecast page.

Hua Hong Semiconductor Schedules Board Meeting for Interim Results

Hua Hong Semiconductor Limited has announced that its board of directors will hold a meeting on August 28, 2025, to consider and approve the publication of the company’s unaudited interim results for the first half of 2025. This meeting is significant as it will provide insights into the company’s financial performance and could impact its market positioning and stakeholder interests.

The most recent analyst rating on (HK:1347) stock is a Hold with a HK$35.40 price target. To see the full list of analyst forecasts on Hua Hong Semiconductor Ltd. stock, see the HK:1347 Stock Forecast page.

Hua Hong Semiconductor Announces Trading Halt Amid Potential Acquisition

Hua Hong Semiconductor Ltd. announced a trading halt of its RMB shares on the Shanghai Stock Exchange’s STAR Board due to a potential acquisition of equity interests in Shanghai Huali Microelectronics Corporation. The trading halt, effective from August 18, 2025, is expected to last no more than 10 trading days, pending further announcements. The transaction is subject to various approvals and carries uncertainty regarding its implementation, urging investors to remain cautious.

The most recent analyst rating on (HK:1347) stock is a Hold with a HK$35.40 price target. To see the full list of analyst forecasts on Hua Hong Semiconductor Ltd. stock, see the HK:1347 Stock Forecast page.

Hua Hong Semiconductor Reports Strong Q2 2025 Results Amidst Market Fluctuations

Hua Hong Semiconductor Limited reported its second quarter 2025 results, showing a revenue increase of 18.3% year-over-year to US$566.1 million and a net profit rise of 19.2% over the same period. The company achieved record capacity utilization and improved operational metrics amidst global trade fluctuations, while continuing to expand its product portfolio and ramp up its new 12-inch production line in Wuxi.

The most recent analyst rating on (HK:1347) stock is a Hold with a HK$35.40 price target. To see the full list of analyst forecasts on Hua Hong Semiconductor Ltd. stock, see the HK:1347 Stock Forecast page.