The Zhitong Finance App learned that Lyon released a research report stating that it maintains Huahong Semiconductor's (01347) “outperforms the market” rating and believes that its capacity utilization rate has improved, and the target price was raised from HK$16.4 to HK$19.7. The company's revenue for the first quarter was at the lower end of its guidance, while gross margin exceeded the guideline, and the capacity utilization rate increased to 91.7%. The company believes that this year's utilization rate will be close to full capacity. The average price of products fell 7% quarter-on-quarter in the first quarter, but the company expects a gradual recovery. Furthermore, Huahong's second 12-inch chip factory is progressing smoothly, and the company is confident of achieving reasonable utilization rates.