Movement Alert|Hua Hong Semiconductor Falls 3.23% in Regular Trading, Profit-Taking Continues After M&A Approval and Goldman Sachs Target Price Upgrade

Market Focus07-13

On July 13, Hua Hong Semiconductor declined 3.23% in regular trading, trading at HK$180.2/share, with turnover of HK$2.181 billion. The stock continues to retrace after a sharp rally driven by dual catalysts earlier this month.

The company received CSRC approval on July 8 to issue shares to acquire 97.4988% equity in Hualì Micro at a transaction price of RMB 8.268 billion, with authorized supplementary fundraising of up to RMB 7.556 billion for technology upgrades and specialty process R&D. Concurrently, Goldman Sachs raised its target price from HK$174 to HK$333, maintaining a Buy rating, citing AI-driven margin improvement. These catalysts propelled the stock nearly 30% higher within one week.

The market subsequently entered a profit-taking phase. On July 10, the HK-listed shares fell over 8% amid significant short-selling pressure, with the short-sell ratio exceeding 19% and short-sell value surpassing HK$1.2 billion. The current session extends that correction. Within the semiconductor sector, divergence remains pronounced, with GigaDevice down 10.91%, Montage Technology down 2.97%, while SMIC gained 1.57%.

(The above content is based on publicly available market information, generated by a program or algorithm, and is intended solely as a stock movement alert. It does not constitute investment advice or a basis for trading decisions.)

Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.

Comments

We need your insight to fill this gap
Leave a comment