BOCOM INTL released a report initiating a Buy rating on HUA HONG SEMI Listed in Hong Kong with a Target Price of 30 HKD. The bank is Bullish on HUA HONG SEMI primarily because there is high visibility on supply-side expansion and capital expenditure plans, and the company previously demonstrated good capabilities in executing expansion. The report indicates that from the demand side, as the semiconductor Industry cycle recovers, the demand in Consumer Electronics and other downstream sectors has also begun to recover; power management and CIS businesses may benefit from the rise of AI, bringing long-term demand increases. From the supply side, the company’s second 12-inch production line may start contributing revenue this season, with a planned production capacity of 0.083 million 12-inch specialty processes per month. The bank believes that HUA HONG SEMI has high visibility for capital expenditure between 2025 and 2027, concentrated on approximately 2 billion USD annually for equipment procurement related capital expenditure at HUA HONG No. 9 plant. The bank forecasts that HUA HONG SEMI's last quarter revenue and gross margin were 0.536 billion USD and 12.4%, respectively.