Gelonghui, January 15 | Huaxing Securities published a report, believing that Huahong Semiconductor's pioneering price reduction is expected to increase wafer shipments and sales revenue in the first quarter of this year. It also believes that the funds raised by Huahong Semiconductor's listing on the Shanghai Stock Exchange Science and Technology Innovation Board will help cushion the company's profit-side pressure and make up for temporary operating losses, thus controlling net losses in the previous quarter. The bank expects that Huahong Semiconductor's gross margin for the first quarter of this year will increase quarterly, raising this year's gross margin forecast from 8.6% to 11.4%, thus drastically raising this year's earnings per share forecast. The bank also indicated that, considering that Huahong Semiconductor's return on net assets ROE is expected to be at a low unit level after landing on the Science and Technology Innovation Board of the Shanghai Stock Exchange, its target price was raised from HK$16.5 to HK$19.5, and its rating was raised from “sell” to “hold” because it is expected that the company will take the lead in cutting prices to successfully boost demand elasticity.