The Zhitong Finance App learned that CMB International released a research report stating that the investment rating of Huahong Hongli (01347) was raised from “hold” to “buy”, and the target price was raised 7% from HK$97 to HK$104. The bank pointed out that Huahong's performance in the third fiscal quarter was strong. Current business revenue and gross margin both exceeded guidelines. Consolidated revenue (including Hualiwei) reached US$987 million, up 19.9% year on year and 9.9% quarterly.

The gross margin for the third fiscal quarter increased 4.7 percentage points quarterly to 24.6%, and net profit increased 77.7% quarterly to US$123.4 million. CMB International pointed out that Huahong Hongli's fourth fiscal quarter guidance shows that the business is expected to grow further, mainly supported by the release of Fab 9A production capacity and continued early price increases. The capacity utilization rate remains above 100%, and key drivers of profit performance include price, product structure, and the pace of new capacity introduction.

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