Equity Long-Short

Mo Aziz

Capital markets veteran with 25 years across sell-side and buy-side research, investor relations, and fund management. Currently publish independent equity research (Mofferies Investment Research, via Smartkarma) spanning semiconductor memory (DRAM/NAND/HBM), foundry, semiconductor equipment and advanced packaging, gold and cross-asset strategy, financials forensics, and APAC IPOs — with a standing watchlist of 190+ companies across 41 countries. Background includes deep aviation-sector expertise (airlines, airports, OEMs, lessors, air cargo, travel/OTAs). Approach centers on identifying cyclical inflection points and mispriced risk across sectors, translated into explicit, actionable calls.

Hua Hong Grace (1347.HK) Q2 2026 Earnings Report Review & Full Transcript

Hua Hong Grace Semiconductor (1347 HK) - Initiate with a SELL

Equity Bottom-Up

Hua Hong Semiconductor / Equity Bottom-Up

<ul>
<li>Hua Hong joins the HSI on 7 September at ~0.54% weight. Passive rebalancing demand is mechanical, price-insensitive, and expires on effective date — irrelevant to valuation.</li>
<li>Down 22% since initiation, the stock still trades at 57x FY26E EV/EBITDA — three to four times the peer range — with FCF deeply negative through 2027.</li>
<li>BEARISH with FV HKD88 pegged to 12x FY27E EV/EBITDA — probability-weighted, sovereign-premium-adjusted, and already below SMIC's multiple for a business with inferior margins and negative FCF.</li>
</ul>


Hua Hong joins the HSI on 7 September at ~0.54% weight. Passive rebalancing demand is mechanical, price-insensitive, and expires on effective date — irrelevant to valuation.
Down 22% since initiation, the stock still trades at 57x FY26E EV/EBITDA — three to four times the peer range — with FCF deeply negative through 2027.
BEARISH with FV HKD88 pegged to 12x FY27E EV/EBITDA — probability-weighted, sovereign-premium-adjusted, and already below SMIC's multiple for a business with inferior margins and negative FCF.


Hua Hong Grace (1347 HK): HSI Inclusion Changes the Path, Not the Destination