Gelonghui, Feb. 7 | Damo released a report saying that Huahong Semiconductor's revenue and gross margin for the fourth quarter of last year were generally in line with expectations, and operating profit margins increased due to one-time additional revenue. The company expects revenue of 450 to 500 million US dollars for the first quarter of this year, down 1% to 10% from quarter to quarter, while market expectations are flat to slightly increase, gross margin guidance is 3 to 6%, and average sales prices are stabilizing. According to Daimo, Huahong Semiconductor believes that customer orders will increase in the first half of this year, and revenue for the second quarter should increase quarterly. As for pricing trends, the company expects pricing to remain stable after a drastic reduction in production capacity in the fourth quarter of last year, and the fab's capacity utilization rate is still the company's top priority. If the overall capacity utilization rate does not reach 90% or more, it may be difficult to raise wafer prices. The bank lowered the company's target price from HK$18 to HK$15.8, and the rating was “in line with the market”.