Goldman Sachs cut Hua Hong Hongli’s (01347.HK) target price to HK$289 from HK$335, a 13.7% reduction, and maintained a Buy rating. The bank trimmed net profit forecasts for fiscal 2026 and 2027 by 5% and 2%, respectively, to reflect integration of subsidiary Huali Microelectronics, and lifted the 2028 forecast by 3%. Goldman expects generative AI investment and client strategies to boost demand for embedded and discrete non-volatile memory and power-management ICs. Higher depreciation and initia

Goldman Sachs cut Hua Hong Hongli’s (01347.HK) target price to HK$289 from HK$335, a 13.7% reduction, and maintained a Buy rating. The bank trimmed net profit forecasts for fiscal 2026 and 2027 by 5% and 2%, respectively, to reflect integration of subsidiary Huali Microelectronics, and lifted the 2028 forecast by 3%. Goldman expects generative AI investment and client strategies to boost demand for embedded and discrete non-volatile memory and power-management ICs. Higher depreciation and initial integration costs will weigh on near-term earnings, but continued expansion of 12‑inch capacity should drive long-term scale benefits and improved operating leverage.