The Zhitong Finance App learned that Huahong Semiconductor (01347) rose more than 4% in the afternoon. As of press release, it had risen 3.76% to HK$19.32, with a turnover of HK$137 million.
According to the news, Huahong Company's recent research notes show that the company's capacity utilization rate clearly rebounded in the first quarter. Both 8 inches and 12 inches were close to full load, so the downward trend in prices has come to an end. It is expected that prices may begin to rise in the next few quarters. The company is proceeding with the construction of the second 12-inch factory according to the plan. Construction will be completed and trial production will begin before the end of the year.
According to Guoxin Securities, Huahong Semiconductor's gross margin for the first quarter was 6.4%, slightly exceeding the 3%-6% guideline. The company's sales revenue for the second quarter was between US$47—50 million, and gross margin was between 6%-10%. The median revenue and gross margin guidelines all increased month-on-month. Furthermore, in the first quarter, wafer delivery increased 7.9% month-on-month, and capacity utilization rebounded to 91.7%.