HUA HONG SEMI (01347) plummeted 5.02% during intraday trading on Monday, extending the downward movement in semiconductor stocks.
The decline is part of a broader semiconductor sector correction following an extended rally that has driven year-to-date sector gains exceeding 56%. Market data indicates the sector's price-to-earnings ratio has reached approximately 115x, sitting at the 91st percentile over the past decade. A recent global fund manager survey showed 73% of respondents consider long semiconductor positions the most crowded trade currently, contributing to profit-taking pressure across the industry.
HUA HONG SEMI itself had surged over 11% on May 28 before retreating 5% on May 29, reflecting heightened volatility. Meanwhile, the company disclosed responses to regulatory inquiries regarding its acquisition of Huali Micro, which would add 38,000 wafers per month of 65/55nm and 40nm capacity.
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