Goldman Sachs said it is positive on Huahong Hongli (01347.HK), forecasting QoQ
revenue growth of 11% in 3Q2026 and 15% in 4Q2026 versus 9% in 2Q2026, driven by
Chinese AI spending and customers’ domestic-first procurement to secure supply.
The bank said Huahong is expanding capacity with utilization remaining high amid
strong demand and technology-node migration; generative AI is the main demand
driver, lifting embedded flash, NOR flash and power-management IC demand.
Huahong completed a September acquisition of a 97.5% stake in Huali
Microelectronics; Huali has since become a wholly owned subsidiary and will be
consolidated, which Goldman says broadens Huahong’s 12-inch manufacturing
platform and supports long-term capacity and node expansion. Goldman expects
strong demand to underpin utilization, ASPs and gross margins, notes Fab9A
capacity will rise by about 40% by end-3Q2026 with full load targeted in 1H2027,
and reiterates Buy with a 12-month PT of HK$335.
