Abstract
HUA HONG SEMI will report on February 12, 2026 post-Market; this preview compiles last quarter’s actuals and this quarter’s forecasts on revenue, margins, net income, and EPS, alongside recent media commentary and analyst views to frame expectations for potential top-line expansion and an early-cycle margin recovery.Market Forecast
Based on the company’s latest quarterly forecast data, the current quarter’s revenue is estimated at RMB 666.31 million, implying a year-over-year increase of 24.32%; forecast EBIT is RMB -21.88 million with an estimated year-over-year change of -51.51%, and forecast EPS is RMB 0.02 with an estimated year-over-year increase of 18.42%. Consensus commentary centers on a gradual gross margin rebuild from last quarter’s trough and stabilization in net profitability, though near-term EBIT may remain pressured by ramp costs; adjusted EPS is guided to modest growth on improved utilization and mix.The company’s main business remains semiconductor product manufacturing and sales, for which the last reported quarter revenue stood at RMB 635.18 million; management attention is on utilization improvements and product-mix optimization to support margins and earnings quality. The area viewed as the largest incremental growth potential is higher-value specialty processes within the core manufacturing portfolio, supported by revenue momentum from RMB 635.18 million last quarter and forecast year-over-year revenue growth of 24.32% this quarter.
Last Quarter Review
In the previous quarter, HUA HONG SEMI reported revenue of RMB 635.18 million, a gross profit margin of 13.52%, net profit attributable to the parent company of RMB 25.73 million, a net profit margin of 4.05%, and adjusted EPS of RMB 0.02, with year-over-year adjusted EPS declining by 42.31%.Quarterly profitability improved sequentially as net profit grew quarter-on-quarter by 223.50%, supported by higher fab utilization and early benefits from cost optimization. The main business of semiconductor product manufacturing and sales delivered RMB 635.18 million in revenue; management is emphasizing specialty platforms and customer diversification to underpin further recovery, with last quarter’s year-over-year revenue growth recorded at 20.69%.
Current Quarter Outlook (with major analytical insights)
Main business momentum and utilization trajectory
The core semiconductor manufacturing operation remains the key driver for near-term performance. With the previous quarter’s revenue at RMB 635.18 million and the current quarter’s revenue estimated at RMB 666.31 million, the model implies continued utilization improvement and a healthier product mix supporting a measured top-line increase of 24.32% year-over-year. Gross profit margin last quarter stood at 13.52%, a level that typically reflects early-cycle recovery for an IDM-light specialty foundry footprint; as volumes normalize, incremental margin expansion should follow given fixed-cost absorption dynamics. The focus this quarter is whether wafer starts and yield improvements can offset ongoing cost pressures, enabling adjusted EPS to rise to RMB 0.02, in line with the forecast. Execution on utilization remains the most sensitive variable: even low-single-digit shifts can materially influence gross margin when starting from a low base.Specialty processes as the most promising growth vector
Within the portfolio, higher-value specialty platforms—such as power devices, embedded non-volatile memory, and analog-mixed signal—appear positioned for faster recovery relative to commoditized nodes. The combination of customer qualification cycles completed in the prior periods and incremental orders suggests a more supportive demand profile heading into this quarter. From last quarter’s RMB 635.18 million base, the projected 24.32% year-over-year revenue growth implies that specialty processes are lifting blended average selling prices and improving mix, even if EBIT guidance remains negative due to ramp and depreciation burdens. Investors will look for commentary on new product ramps, customer wins, and progress on cycle times; confirmation here would validate a path toward gross margin expansion above the 13.52% last reported level over the next few quarters. Given the smaller relative share of standard commodity lines, sustained specialty momentum could disproportionately improve profitability as fixed costs are absorbed.Key stock price drivers this quarter: margins vs. ramp costs
The tug-of-war between margin recovery and ramp-related costs will likely dominate share performance around the print. Forecast EBIT of RMB -21.88 million indicates that while revenue and EPS may improve year-over-year, near-term operating profitability could remain under pressure as the company invests to secure medium-term capacity and capability. A sequential improvement in net profitability would build on the last quarter’s quarter-on-quarter rebound of 223.50% in net profit, anchoring expectations for continued stabilization. Market sensitivity will be high to three items: the degree of gross margin expansion from the 13.52% base, clarity on the cadence of depreciation and ramp costs that depress EBIT, and forward guidance on utilization and order visibility. If management signals improving fab loading and mix alongside tighter opex control, investors may anchor on the earnings power later in the year, mitigating near-term EBIT weakness.Analyst Opinions
Recent institutional commentary skews constructive, with a majority leaning bullish on a gradual recovery in revenues and an early-stage margin rebuild, while acknowledging near-term EBIT headwinds. Analysts highlighting a positive stance point to the 24.32% year-over-year revenue growth estimate for the current quarter and the sequential improvement in net profitability seen last quarter, arguing that utilization gains and improving mix should translate into better gross margins from the 13.52% prior level. The consensus among bullish voices is that EPS of RMB 0.02 for the quarter is achievable, supported by improved order flow and stabilization in key specialty platforms.Well-followed research desks emphasize the interplay between volume recovery and cost absorption as the main determinant of earnings quality. They expect management to reiterate confidence in customer demand across specialty technologies, while tempering expectations for immediate EBIT inflection due to ongoing ramp expenditures. These views also note that last quarter’s net profit margin of 4.05% provides a floor from which gradual expansion can proceed as fixed-cost leverage improves. In sum, the prevailing view anticipates revenue growth in line with the 24.32% projection and measured progress on margins, with stock reaction contingent on the degree of gross margin improvement and clarity on the cost trajectory into subsequent quarters.
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