The Zhitong Finance App learned that Huahong Hongli (01347) rose more than 3% in the afternoon. As of press release, it rose 2.78% to HK$72.15, with a turnover of HK$2,159 billion.

According to the news, Huahong Hongli announced its results. Revenue for the third quarter was 6.706 billion yuan, up 13.95% year on year; net profit was 835 million yuan, up 136.14% year on year. Excluding Hualiwei, the company's revenue was US$803 million, exceeding the previous guideline limit of US$770 to US$780 million; the gross profit margin was 19.9%, clearly exceeding the target range of 16% to 18%.

China Merchants Securities pointed out that the company's 26Q3 wafer shipments and ASP increased simultaneously, driving revenue to record highs and year-on-month improvement in gross margin; Hualiwei's acquisition completed further expansion of the 12-inch business scale, and the layout of the characteristic process platform continued to improve. Demand for MCUs, flash memory, power management and power devices continues to grow, supply and demand in some segments are tightening, and additional production capacity is gradually being released, which is expected to support subsequent revenue and profitability increases.

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