GLONGHUI, August 14 | CMB International released a report saying that Huahong Semiconductor's second-quarter revenue of 0.479 billion US dollars was 0.479 billion US dollars, down 24.2% from year to year, up 4% from quarter to quarter, slightly lower than the market forecast of 2%, and slightly lower than the bank's forecast of 1.6%. Moderate quarterly growth was mainly driven by increased wafer shipments, but the continued decline in average sales prices was partially offset. Benefiting from the continued increase in capacity utilization, the gross margin for the second quarter was 10.5%, higher than the market forecast of 8.7% and the bank's forecast of 9%. Net profit for the quarter reached 6.7 million US dollars, down 91% from year to year, down 79% from quarter to quarter, lower than the market forecast of 20 million US dollars, but higher than the bank's forecast of 2 million US dollars. According to the report, the median value of the company's revenue guidance for the third quarter was $0.51 billion, which meant a year-on-year decline of 10.3% and a quarter-on-quarter increase of 6.6%. The gross margin guideline is 10% to 12%. The company's second-quarter results and third-quarter guidance show that although the terminal application market is still facing challenges, demand in some market segments is gradually picking up, in line with the bank's previous expectations. The bank believes that the company is the main beneficiary of the trend of autonomy and control in China's semiconductor industry chain. The bank maintained its “buy” rating and target price of HK$24 unchanged.