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<Research>HTSC Adds HUA HONG SEMI (01347.HK) TP to $120 as Acquisition of Quality Assets Boosts Profitability
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The market is closely monitoring asset operations and production expansion progress in the semiconductor industry, Huatai Securities released a research report saying. HUA HONG SEMI (01347.HK) planned to acquire 97.4988% equity of Huali Microelectronics by issuing shares, with the transaction valued at approx. RMB8.27 billion, in its restructuring proposal. Meanwhile, the Company intended to issue shares to specific investors to raise supporting funds not exceeding RMB7.56 billion. The broker conducted a pro forma assessment using 2024 data. Huali Microelectronics, as a quality wafer foundry asset, is expected to immediately enhance performance upon infusion. Pro forma net profit attributable to the parent company is projected to increase by 151% to RMB960 million from RMB380 million, boosting EPS by 127% to RMB0.5 from RMB0.22, potentially achieving a leapfrog growth in profitability. Therefore, Huatai Securities added its target price for HUA HONG SEMI's H-shares from $119 to $120, with rating kept at Buy. AASTOCKS Financial News Website: www.aastocks.com |
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