Leon said that the average sales price of Huahong Semiconductor (01347) in the fourth quarter is expected to drop 14% month-on-month to 430 US dollars, and its average price may continue to be pressured until the first half of next year.
The Zhitong Finance app learned that Lyon released a research report stating that Huahong Semiconductor (01347) was the first to “outperform the market” rating, with a target price of HK$17.3. As demand in the semiconductor industry is slowly recovering, Huahong Semiconductor and its peers are expanding production capacity. It is estimated that the average sales price of Huahong Semiconductor in the fourth quarter fell 14% month-on-month to 430 US dollars. The average price will be pressured or will continue until the first half of next year, while the average sales price may remain roughly the same from the first quarter to the next quarter of next year. At the same time, the bank pointed out that the expansion of 12-inch semiconductor production capacity may cause a depreciation burden on gross margin. In the long run, the company's growth in the mainland should be supported by capacity expansion and localization.