HUA HONG GRACE (01347) surged 5.03% in pre-market trading on Wednesday, extending its recovery from an oversold trough as the broader semiconductor sector staged a rebound.
The rally was fueled by a sector-wide recovery, with peers such as GigaDevice, Montage Technology, and SMIC also posting notable gains. The stock had previously suffered a sharp pullback since late July due to fund diversion effects triggered by Changxin Technology's STAR Market listing, along with sustained leveraged capital outflows. However, short-term selling pressure has been gradually absorbed, and the sector has been initiating an oversold recovery rally since July 31.
Adding to the positive sentiment, BOCI recently raised its target price for HUA HONG GRACE to HK$210, citing the company's leadership in mature-node capacity expansion. The brokerage highlighted that Fab 9A is expected to reach full capacity by the end of Q3, and price increases implemented since April are anticipated to deliver significant margin expansion.
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