According to the news from the Zhongtong Finance APP, Daiwa Securities issued a research report stating that it rated Hua Hong Semiconductor (01347) as "shareholding" and lowered its target price from HK$28 to HK$26. The company's second-quarter performance met expectations with revenues of USD 0.479 billion, a quarterly increase of 4% and a YoY decrease of 24%. The overall capacity utilization rate reached 98%, significantly better than the 92% in the first quarter.

Daiwa stated that the management of Hua Hong shared during the earnings conference that the company's revenue contribution in the Chinese market reached 81% in the second quarter, which is consistent with the bank's view that Hua Hong benefited from the localization demand of China's semiconductor industry. The company also expects 70% of its revenue to come from the Chinese market in the long run and 30% from the global market. In addition, the Wuxi Fab 9 construction is progressing rapidly, with production lines expected to be ready for trial production by the end of the year and capacity to be released starting in the first quarter of next year.