The Zhitong Finance App learned that Huahong Hongli (01347) rose more than 4% in early trading. As of press release, it had risen 4.43% to HK$122.8 billion, with a turnover of HK$1,529 billion.

According to the news, Huahong Hongli announced its interim results. The first half of the year achieved revenue of US$1,378 billion, up 24.5% year on year; gross margin reached 14.8%, up 4.7 percentage points year on year; profit attributable to parent company owners was US$595.68 million, up 409% year on year; and wafer shipments increased 17.9% year on year, a record high. By the end of the second quarter of this year, Huahong Hongli's revenue had achieved 10 consecutive quarters of month-on-month growth.

Notably, Huahong Hongli expects third-quarter revenue of US$77-780 million, an increase of 7.3%-8.7% month-on-month, and revise the gross margin guidelines to 16%-18%. Guojin Securities pointed out that in combination with the current shortage of production capacity for storage, MCU and some power devices, combined with the orderly release of new production capacity, we judge that the company's revenue and profit center for the second half of the year has a solid upward foundation.

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