Hua Hong Semiconductor's stock surged 5.09% during intraday trading on Monday, extending its recent positive momentum.
The significant price movement follows the company's release of strong first-quarter financial results, which showed revenue of USD 660.9 million, representing a 22.2% year-over-year increase. Net profit attributable to shareholders skyrocketed 513.1% to RMB 140 million. Management also provided optimistic guidance for the second quarter, forecasting revenue between USD 690-700 million with gross margin expanding to 14%-16%.
Analyst sentiment has turned increasingly bullish on the stock. BOCI raised its target price for Hua Hong Semiconductor from HKD 116.5 to HKD 152.4 and maintained a Buy rating, citing robust demand from AI infrastructure and an industry-wide pricing upcycle. The company expects full-year average selling price increases of 10%-15%, driven by demand for AI and storage products.
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