[ET Net News Agency, 12 November 2018] Credit Suisse raised its target price for Hua
Hong Semiconductor (01347) to HK$20 from HK$18 and maintained its "buy" rating.
The research house said Hua Hong's 3Q sales growth were 4.9% QoQ, above its guidance for
3-4% QoQ with growth across its product lines. Gross margins were 34%, above its guidance
as utilisation stays full, lifted by improving the mix.
Its 4Q sales were guided up 3-4% QoQ on healthy 8" and strength from MCU and power
discrete, putting the full year on track to grow 15% YoY. With higher revenue offset by
rising
depreciation, GMs were guided flat at 34%, above street 33.1%.
Credit Suisse lifted its 2018/19 EPS forecasts to HK$1.30/HK$1.16. It said that Hua Hong
remains its preferred pick in China foundries. (KL)