Hong Kong Stock Movers: Hua Hong Grace Semiconductor Surges Over 7% Intraday Ahead of Earnings Release, Price Hikes Expected to Boost Margins

Stock News08-12 14:31

Hua Hong Grace Semiconductor Limited (01347) saw its shares climb more than 7% during trading on Friday, with the stock last up 6.53% at HK$142, on turnover of HK$3.293 billion. The company is scheduled to hold a board meeting on August 13 to approve its second-quarter financial results.

In its first-quarter report, Hua Hong Grace provided guidance for the second quarter of 2026, projecting revenue in the range of $6.9 billion to $7.0 billion and a gross margin between 14% and 16%. According to BOCI, Hua Hong Grace is leading the expansion of mature-node capacity. Its Fab7 and Wuxi plant are already running at full capacity, while Fab9A is expected to reach full production by the end of the third quarter, and Fab9B by the end of 2027. Additionally, the consolidation of Huali Micro Fab5 in the fourth quarter is set to drive the annualized revenue run rate to approximately $4.0 billion by the end of 2026, significantly exceeding market expectations.

Price increases initiated in April are expected to deliver substantial margin elasticity for the company.

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