HUA HONG GRACE (01347) surged nearly 7% in the afternoon session, trading up 5.84% at HKD 134.20, with turnover reaching HKD 4.557 billion.
The semiconductor foundry sector is experiencing a wave of price hikes. Taiwan Semiconductor Manufacturing Co. (TSMC) previously announced plans to raise prices for both mature and advanced process nodes starting in 2027, with basic increases ranging from 5% to 10% depending on the client and product. Powerchip Semiconductor Manufacturing Corp. (PSMC) raised memory wafer starting prices by 45% in July, while logic semiconductor foundry service prices also saw increases of 10-15%.
Bocom International released a research report noting that HUA HONG GRACE is leading the expansion in mature nodes. Fab 7 and the Wuxi plant are already at full capacity. Fab 9A is expected to reach full production by the end of the third quarter, and Fab 9B by the end of 2027. Additionally, the consolidation of Hua Li Micro Fab 5 in the fourth quarter will drive the annualized revenue run rate to USD 4 billion by the end of 2026, significantly exceeding market expectations. Price increases, which began in April, are expected to deliver substantial profit margin leverage. The broker raised its target price for HUA HONG GRACE from HKD 152.40 to HKD 210.00, maintaining a "Buy" rating.
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