According to a research report released by Morgan Stanley, Hua Hong Semiconductor (28.95, 0.80, 2.84%) (01347) "overweight" rating has been maintained, with a 5% increase in earnings per share this year. In 2023 / 24, earnings per share has been lowered by 1% by 2%, and the target price has been lowered from HK $47 to HK $41. The bank believes that as Wuxi factory output continues to rise steadily, first-quarter revenue of $595 million (up 95 per cent year-on-year and 13 per cent quarter-on-quarter) hit another quarterly high and 6 per cent higher than the guidance.

Looking ahead to the second quarter of this year, management directed its revenue to rise 3 per cent (78 per cent year-on-year) to $615 million on a quarterly basis, with a gross margin of 28 per cent and 29 per cent, according to the report, which the bank believes will ease investors' concerns. The management said that the company has the support of the mainland government in terms of logistics, and 3000 workers have stayed in the factory to assist in production.