alphabetonsscratch| Huahong: First quarter revenue was lower than the guideline gross profit margin exceeded expectations and the target price was raised to HK$19.7

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[Lyon Report: Huahong's first-quarter revenue was lower than expected but gross profit margin exceeded guidancealphabetonsscratch, the target price is raised to 19alphabetonsscratch.7 Hong Kong dollars]

Lyon recently releasedalphabetonsscratchThe report pointed out that Huahong Semiconductor's revenue in the first quarter of this year was slightly lower than expectations, but its gross profit margin performance exceeded the guidance given by the company. The report mentioned that Huahong's capacity utilization rate has increased to 91alphabetonsscratch.7%, and is expected to operate close to full capacity this year. Although the average product price in the first quarter fell by 7% from the previous quarter, Huahong is optimistic about the gradual recovery of product prices. Huahong is currently successfully advancing the construction of its second 12-inch wafer fab and expressed confidence in achieving "reasonable" utilization rates. Based on improved capacity utilization and the smooth progress of the fab, Lyon raised Huahong's target price to HK$19.7 while maintaining its "outperform" rating.