HUA HONG GRACE shares surged 5.04% in intraday trading on Thursday, riding a wave of optimism ahead of its second-quarter earnings release and a broader rally in Hong Kong-listed semiconductor stocks.
The company is scheduled to hold a board meeting during the session to approve its unaudited Q2 results, with a post-market earnings call planned later in the day. The earnings release window has intensified speculative trading activity, fueled by the company's prior guidance for Q2 revenue of approximately USD 6.9 billion to USD 7.0 billion and a gross margin of 14% to 16%. BOCI recently raised its target price to 210 HKD, citing the firm's leadership in mature-node capacity expansion, with Fab 7 and the Wuxi facility already running at full capacity, Fab 9A expected to reach full production by the end of Q3, and price increases initiated in April poised to deliver significant margin elasticity.
The semiconductor sector as a whole provided a strong tailwind, with Hong Kong chip stocks rallying collectively. Peer CFMEE surged over 12%, while MONTAGE TECH climbed more than 6%, contributing to the positive sentiment that lifted HUA HONG GRACE.