External broker reports(aggregated public sources), CMB International

CMB International

External broker reports(aggregated public sources)

Incorporated in Hong Kong, supported by the mainland and targeting in global market, CMB International Capital Corporation Limited (“CMBI”) is an integrated financial institution providing comprehensive and professional services. As a wholly-owned subsidiary of China Merchants Bank ("CMB"), by leveraging on the Group’s synergy and coordination in domestic and overseas markets, as well as CMB’s strong resources and outstanding social reputation, CMBI and its subsidiaries have been actively implementing diversified business strategies and set up an overall layout of main business segments including Corporate Finance, Asset Management, Wealth Management, Global Markets and Structured Finance, etc. Adhering to the philosophy of “being clients oriented and increasing our own values by the way of creating value for clients”, CMBI endeavors to provide quality and integrated financial services to institutional, corporate and individual customers both domestic and overseas including Hong Kong IPO sponsorship and underwriting, share placement and rights issue for listed companies, financial advisors, bonds issuance services, asset management, direct investment, wealth management, equity sales and trading, etc.

Equity Bottom-Up

Hua Hong Semiconductor / Equity Bottom-Up

<ul><li>Hua Hong Semi released its 2Q25 earnings. Revenue was RMB566mn, up 18.3%/4.6% YoY/QoQ, driven by increased wafer shipments (18.0%/6.0% YoY/QoQ).</li><li>The results were in line with guidance and Bloomberg consensus. GPM improved 1.6ppts sequentially to 10.9%, beating guidance (7%-9%) and consensus (8.3%).</li><li>NPM rose to 1.6% from 0.7% in 1Q25 on better GPM and increased other gains (subsidies etc.). </li></ul>Content is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.

Hua Hong Semi released its 2Q25 earnings. Revenue was RMB566mn, up 18.3%/4.6% YoY/QoQ, driven by increased wafer shipments (18.0%/6.0% YoY/QoQ).The results were in line with guidance and Bloomberg consensus. GPM improved 1.6ppts sequentially to 10.9%, beating guidance (7%-9%) and consensus (8.3%).NPM rose to 1.6% from 0.7% in 1Q25 on better GPM and increased other gains (subsidies etc.). Content is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.

Hua Hong Semi (1347 HK) - 2Q Margin Beat, D/G to HOLD Due to Substantial Recent Share Price Gains

Asian Hedge Fund Manager, Long Short Equity, Macro

David Mudd

<ul>
<li>Hong Kong's secular bull market continues this year with record buying from mainland investors through the Southbound Connect platform.</li>
<li>
<a href="https://www.smartkarma.com/entities/aac-technologies-holdings-inc" target="_blank" data-smartkarma-citation="entities:6544:1" rel="noopener">AAC Technologies Holdings (2018 HK)</a> announced a positive profit alert of of 150% increase in profit for 2024.  The AI, phone and auto segments saw value content increases.
</li>
<li>
<a href="https://www.smartkarma.com/entities/hua-hong-semiconductor-ltd" target="_blank" data-smartkarma-citation="entities:7201:1" rel="noopener">Hua Hong Semiconductor (1347 HK)</a> is well-positioned to cater to China's increasing demand for locally designed and produced chips, especially in the EV, smart home appliances and wearables industries.
</li>
</ul>


Hong Kong's secular bull market continues this year with record buying from mainland investors through the Southbound Connect platform.

AAC Technologies Holdings (2018 HK) announced a positive profit alert of of 150% increase in profit for 2024.  The AI, phone and auto segments saw value content increases.


Hua Hong Semiconductor (1347 HK) is well-positioned to cater to China's increasing demand for locally designed and produced chips, especially in the EV, smart home appliances and wearables industries.



BUY/SELL/HOLD: Hong Kong Stock Update (February 20)

Asia and Global Semiconductor and Tech Research

Andrew Lu

TSMC (Taiwan Semiconductor Manufacturing) / Equity Bottom-Up

TSMC (Taiwan Semiconductor Manufacturing)

<ul>
<li>TSMC reiterates 2024 sales y/y growth of 20-25% but revises down 2024 global semiconductor y/y sales from over 10% to 10% and global foundry sales growth from 20% to 15-19%.</li>
<li>
No more Moore's Law: After 3 years ramp up gap between N5-N3, TSMC confirms 10-11 quarters of ramp up gap between N3 and N2 due to longer production cycle.</li>
<li>Driven by stronger digital consumer (33% q/q), HPC (3% q/q), IoT (5% q/q) sales but weaker smartphone IC (-16% q/q), TSMC reports 1Q24 sales decline of only 5% q/q.</li>
</ul>


TSMC reiterates 2024 sales y/y growth of 20-25% but revises down 2024 global semiconductor y/y sales from over 10% to 10% and global foundry sales growth from 20% to 15-19%.

No more Moore's Law: After 3 years ramp up gap between N5-N3, TSMC confirms 10-11 quarters of ramp up gap between N3 and N2 due to longer production cycle.
Driven by stronger digital consumer (33% q/q), HPC (3% q/q), IoT (5% q/q) sales but weaker smartphone IC (-16% q/q), TSMC reports 1Q24 sales decline of only 5% q/q.


What Is TSMC Telling Us About Semi Supply Chain Stories at Its Investor Conference?

Semiconductor & Technology Specialist, Ingenuity

William Keating

Semiconductor & Technology Specialist

Ingenuity

Our focus is exclusively on in-depth research & consulting in the broader semiconductor industry. We focus on the key players, namely Intel, Micron, Qualcomm, Apple, Samsung, NVIDIA, AMD, TSMC & Global Foundries - as well as some of the lesser known, but nonetheless critical, companies such as ASML (for EUV), Mellanox, Cavium, Xilinx etc. We specialise in their products, roadmaps, process technologies, competitive advantages & threats etc. We also help our clients understand the implications of new and emerging technologies, e.g. 3D X-Point, 3D NAND, Carbon Nanotubes, Autonomous Driving, Graphene, Silicon Photonics, Wafer-Level Optics, Artificial Intelligence, FPGA, GPU, ASIC etc. 

Semiconductor Analysis & Research

<ul>
<li>Revenues of US$568.5 million, down 10% sequentially and down 9.7% YoY, at the bottom of the previously guided range.</li>
<li>Net loss of $25.8 million compared to a profit of $7.8 million in the previous quarter and $65.5 million in the year ago period.</li>
<li>With current quarter gross margins in the 2-5% range, HHGrace has flipped from best in class in H123 to the worst in class now.</li>
</ul>


Revenues of US$568.5 million, down 10% sequentially and down 9.7% YoY, at the bottom of the previously guided range.
Net loss of $25.8 million compared to a profit of $7.8 million in the previous quarter and $65.5 million in the year ago period.
With current quarter gross margins in the 2-5% range, HHGrace has flipped from best in class in H123 to the worst in class now.


HHGrace. Yikes! Things Just Got Really Ugly

<ul><li>Hua Hong Semi announced 1Q25 results. Revenue was up 17.6% YoY/flattish QoQ at US$541mn, a mixed impact of higher wafer shipment (up 42% YoY and up 7% QoQ) and continuous ASP pressure (down 2% YoY and down 1% sequentially).</li><li>Revenue was largely in-line with guidance and consensus.</li><li>GPM was 9.2% vs. 6.4%/11.4% in 1Q24/4Q24, within the guided range towards the lower bound, missing consensus estimates by 1.3ppts. </li></ul>Content is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.

Hua Hong Semi announced 1Q25 results. Revenue was up 17.6% YoY/flattish QoQ at US$541mn, a mixed impact of higher wafer shipment (up 42% YoY and up 7% QoQ) and continuous ASP pressure (down 2% YoY and down 1% sequentially).Revenue was largely in-line with guidance and consensus.GPM was 9.2% vs. 6.4%/11.4% in 1Q24/4Q24, within the guided range towards the lower bound, missing consensus estimates by 1.3ppts. Content is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.

Hua Hong Semi (1347 HK) - 1Q25 Revenue In-Line; GPM Under Pressure

China

Hua Hong Semiconductor Limited manufactures semiconductors on 200mm wafers for specialty applications. The Company's products are used in the consumer electronic, communication, computing and industrial, and automotive industries.

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Hua Hong Semiconductor (1347 HK)

BUY/SELL/HOLD: Hong Kong Stock Update (February 20)

Mainland investors are buying record amounts in HK during secular bull mkt. AAC Tech reported positive earnings surprise and Hua Hong is rapidly...

David Mudd

What Is TSMC Telling Us About Semi Supply Chain Stories at Its Investor Conference?

What Is TSMC Telling Us About Semi Supply Chain Stories at Its Investor Conference? TSMC revises down 2024 global semi y/y sales from over 10% to...

Andrew Lu

HHGrace. Yikes! Things Just Got Really Ugly

A surprise loss-making Q323, ASPs down ~16% YTD and set to decline further, inventory write-downs and gross margin collapsing to the 2-5% range....

William Keating

Hua Hong Semi (1347 HK) - 1Q25 Revenue In-Line; GPM Under Pressure

Revenue was up 17.6% YoY/flattish QoQ at US$541mn, a mixed impact of higher wafer shipment (up 42% YoY and up 7% QoQ and continuous ASP pressure...

CMB International

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