Hong Kong Stock Alert: HUA HONG GRACE (01347) Falls Over 7% Again, Down Nearly 70% from This Year's Peak; Goldman Sachs Lowers Target Price and Earnings Forecast

Stock News11:57

According to the Zhitong Finance APP, HUA HONG GRACE (01347) fell more than 7% again, down nearly 70% from this year's high of HK$219.6. As of press time, it dropped 7.69% to HK$67.85, with a turnover of HK$1.027 billion.

Goldman Sachs released a research report stating that it lowered the target price of HUA HONG GRACE by 13.7%, from HK$335 to HK$289, while maintaining a "Buy" rating.

The bank stated that to reflect the integration of its subsidiary Hua Li Microelectronics, it cut net profit for the 2026 to 2027 fiscal years by 5% and 2%, and raised it by 3% for 2028.

The bank expects that investments in the generative AI sector and customer strategies will drive strong market demand for embedded and standalone non-volatile memory and power management integrated circuits.

Although increased depreciation and initial integration costs will put pressure on short-term profitability, the continuous expansion of 12-inch manufacturing capacity is expected to bring economies of scale and enhance operating leverage in the long term.

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