Jefferies Maintains Neutral Rating on Hua Hong Grace, Lifts Price Target to HK$140

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Aug 14

Jefferies released a research report noting that Hua Hong Grace (01347) delivered second-quarter results in line with expectations, but both gross margin and EBIT exceeded forecasts due to higher average selling prices and effective cost control measures. Net profit underperformed expectations due to lower-than-anticipated other income.

The third-quarter outlook is broadly in line with expectations, with gross margin performing as projected. The firm maintains a "Hold" rating on Hua Hong Grace, raising the target price from HK$91 to HK$140. Jefferies has also increased its gross margin forecasts for 2026 and 2027 by 3.8 percentage points, reflecting a faster-than-expected recovery in margins.

However, intense competition in mature process nodes and ongoing capacity oversupply may still exert pressure on the company's overall profitability.

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Jefferies has also increased its gross margin forecasts for 2026 and 2027 by 3.8 percentage points, reflecting a faster-than-expected recovery in margins.<br><br>However, intense competition in mature process nodes and ongoing capacity oversupply may still exert pressure on the company's overall profitability.</p>\n\n</article>\n</div>\n</body>\n</html>\n","isBrief":false,"type":0,"news_type":1,"symbol":"BK1589","symbol_name":"北水核心资产","start_time":0,"source_url":"","article_id":"1188260579","we_media_id":"1036600163","thumbnails":[],"rights":null,"url":"https://stock-news.laohu8.com/highlight/detail?id=1188260579","pubTimestamp":1786698428,"columns":[],"sourceInfo":null,"weMediaInfo":{"media_name":"Stock News","introduction":"Global Stock News First-Time Broadcast","home_visible":1,"id":"1036600163","head_image":"https://community-static.tradeup.com/news/b3bf6d02ad1a6e9e7377eebbb162346a"},"summary":"Jefferies released a research report noting that Hua Hong Grace (01347) delivered second-quarter results in line with expectations, but both gross margin and EBIT exceeded forecasts due to higher...","collect":0,"end_time":0,"defaultTopTitle":"","property":[],"viewcount":null,"language":"en","relate_stocks":{"688347":"华虹宏力","BK1589":"北水核心资产","LU1303224171.USD":"NINETY ONE GSF ALL CHINA EQUITY \"A\" (USD) INC","IE0034224299.USD":"PINEBRIDGE ASIA EX JAPAN EQUITY \"A\" (USD) ACC","LU1719994722.HKD":"NINETY ONE GSF ALL CHINA EQUITY \"A\" (HKD) ACC","LU0708995583.HKD":"TEMPLETON CHINA \"A\" (HKD) ACC","01347":"华虹宏力","SG9999006597.SGD":"United China-India Dynamic Growth SGD","BK1607":"新IT概念","BK1614":"港股-半导体","LU1813983027.USD":"MANULIFE GF DRAGON GROWTH \"AA\" (USD) INC","TCHI":"iShares MSCI China Multisector Tech ETF","BK1163":"半导体产品","LU2039709279.SGD":"MANULIFE GF DRAGON GROWTH \"AA\" (SGDHDG) INC","LU1328277881.USD":"MANULIFE GF DRAGON GROWTH FUND \"AA\" (USD) INC","LU1770034418.SGD":"ALL CHINA EQUITY \"A\" (SGDHDG) ACC","LU0320764599.SGD":"FTIF - Templeton China A Acc SGD","LU0052750758.USD":"富兰克林中国基金A Acc","LU0314109678.HKD":"MANULIFE GF DRAGON GROWTH \"AA\" (HKD) INC","LU1251922891.USD":"NINETY ONE GSF ALL CHINA EQUITY \"A\" (USD) ACC"},"translate_title":"杰富瑞维持华虹恩典中性评级，目标价上调至140港元","themeId":null,"isJumpTheme":false,"ttsUrl":null,"symbols_score_info":{"688347":1,"TCHI":1,"01347":1},"content_text":"Jefferies released a research report noting that Hua Hong Grace (01347) delivered second-quarter results in line with expectations, but both gross margin and EBIT exceeded forecasts due to higher average selling prices and effective cost control measures. 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