[ET Net News Agency, 11 February 2021] Jefferies Research lifted its target price for
Hua Hong Semiconductor (01347) to HK$54.64 from HK$34.53 but downgraded its rating to
"hold" from "buy" on rich valuation.
The research house raised Hua Hong's 2021/22 revenue by 10%/18%, driven by (1) faster
12" utilization ramp, (2) more price hike in its 8", and (3) bigger 12" capacity expansion
to 65 kwpm by end-21 and 150 kwpm by 2030.
Jefferies believes the global semi upcycle, tight supply, China's localization theme,
and potentially weaker local competition could keep its stock price firm. It raised its
2021/22 EBITDA forecasts by 95%/54%. (KL)