Shares of Hua Hong Semiconductor (01347) rose more than 5% in early trading. At the time of writing, the stock was up 3.28% to HK$119.7, with a turnover of HK$1.148 billion.
The company's first-quarter financial report showed revenue of $660.9 million, a year-on-year increase of 22.2%. The gross profit margin reached 13%, up 3.8 percentage points from the same period last year, primarily attributed to an increase in wafer shipments and a rise in average selling prices. Net profit attributable to shareholders was $20.9 million, a significant year-on-year surge of 458.1% and a sequential increase of 19.9%.
An analysis report noted that management indicated the 9A fab is expected to complete its capacity ramp-up in the third quarter and begin contributing at full capacity from the fourth quarter. The report expressed optimism that as downstream demand increases, the company's accelerated capacity expansion and execution could help capture market opportunities.
Management mentioned that the investment for the 9B fab is approximately $6 billion. Construction of the facility began in March 2026, with equipment installation expected to start in the fourth quarter. Management believes the impact of overseas policy restrictions on equipment imports is very limited.
The 9B fab is projected to begin gradually contributing capacity starting in 2027. It is forecasted that the fab's full capacity could reach 55,000 12-inch wafers per month, with a concentrated release expected in 2027.
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