Hua Hong Semiconductor Limited

DB:1HH Stock Report

Market Cap: €6.5b

Hua Hong Semiconductor Valuation

Is 1HH undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

2/6

Valuation Score 2/6

  • Below Fair Value

  • Significantly Below Fair Value

  • Price-To-Earnings vs Peers

  • Price-To-Earnings vs Industry

  • Price-To-Earnings vs Fair Ratio

  • Analyst Forecast

Share Price vs Fair Value

What is the Fair Price of 1HH when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Discounted Cash Flow
Simply Wall St
€6.86
Fair Value
56.0% undervalued intrinsic discount
16
Number of Analysts

Below Fair Value: 1HH (€3.02) is trading below our estimate of fair value (€6.86)

Significantly Below Fair Value: 1HH is trading below fair value by more than 20%.


Key Valuation Metric

Which metric is best to use when looking at relative valuation for 1HH?

Key metric: As 1HH is profitable we use its Price-To-Earnings Ratio for relative valuation analysis.

The above table shows the Price to Earnings ratio for 1HH. This is calculated by dividing 1HH's market cap by their current earnings.
What is 1HH's PE Ratio?
PE Ratio45.4x
EarningsUS$118.69m
Market CapUS$6.72b

Price to Earnings Ratio vs Peers

How does 1HH's PE Ratio compare to its peers?

The above table shows the PE ratio for 1HH vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PEEstimated GrowthMarket Cap
Peer Average16.5x
IFX Infineon Technologies
25.2x16.7%€44.2b
ELG Elmos Semiconductor
12.8x3.9%€1.3b
AIXA AIXTRON
13.9x0.2%€1.6b
WAF Siltronic
14x-45.1%€1.3b
1HH Hua Hong Semiconductor
45.4x27.3%€52.3b

Price-To-Earnings vs Peers: 1HH is expensive based on its Price-To-Earnings Ratio (45.4x) compared to the peer average (16.5x).


Price to Earnings Ratio vs Industry

How does 1HH's PE Ratio compare vs other companies in the European Semiconductor Industry?

0 CompaniesPrice / EarningsEstimated GrowthMarket Cap
1HH 45.4xIndustry Avg. 17.4xNo. of Companies5PE01632486480+
0 CompaniesEstimated GrowthMarket Cap
No more companies

Price-To-Earnings vs Industry: 1HH is expensive based on its Price-To-Earnings Ratio (45.4x) compared to the European Semiconductor industry average (17.4x).


Price to Earnings Ratio vs Fair Ratio

What is 1HH's PE Ratio compared to its Fair PE Ratio? This is the expected PE Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

1HH PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio45.4x
Fair PE Ratio29.8x

Price-To-Earnings vs Fair Ratio: 1HH is expensive based on its Price-To-Earnings Ratio (45.4x) compared to the estimated Fair Price-To-Earnings Ratio (29.8x).


Analyst Price Targets

What is the analyst 12-month forecast and do we have any statistical confidence in the consensus price target?

The above table shows the analyst 1HH forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
Current€3.02
€3.08
+2.0%
22.3%€4.01€2.06n/a16
Jan ’26€2.78
€3.05
+9.7%
22.2%€3.97€2.03n/a16
Dec ’25€2.46
€3.01
+22.3%
21.6%€3.89€2.00n/a17
Nov ’25€2.46
€2.61
+6.2%
23.6%€3.73€1.42n/a16
Oct ’25€2.40
€2.46
+2.3%
20.8%€3.44€1.38n/a16
Sep ’25€1.99
€2.53
+27.4%
21.3%€3.52€1.41n/a16
Aug ’25€2.42
€2.44
+0.7%
23.4%€3.53€1.41n/a15
Jul ’25€2.60
€2.48
-4.5%
23.4%€3.60€1.44n/a15
Jun ’25€2.30
€2.23
-3.0%
17.4%€2.83€1.42n/a15
May ’25€1.86
€2.12
+14.0%
25.3%€3.08€0.85n/a15
Apr ’25€1.80
€2.12
+18.0%
24.4%€3.04€0.83n/a15
Mar ’25€1.99
€2.14
+7.5%
24.9%€3.04€0.83n/a15
Feb ’25€1.72
€2.32
+35.0%
25.1%€3.36€0.83n/a16
Jan ’25€2.16
€2.52
+16.6%
36.3%€4.84€0.82€2.7817
Dec ’24€2.04
€2.81
+37.7%
38.9%€5.26€0.83€2.4618
Nov ’24€2.30
€3.55
+54.3%
29.9%€5.46€1.88€2.4616
Oct ’24€2.38
€3.52
+47.9%
28.9%€5.37€1.85€2.4017
Sep ’24€2.40
€3.44
+43.3%
28.2%€5.26€1.82€1.9918
Aug ’24€3.10
€3.91
+26.1%
27.3%€6.09€1.82€2.4218
Jul ’24€2.98
€4.04
+35.7%
27.2%€6.25€1.87€2.6018
Jun ’24€3.02
€4.17
+38.2%
25.7%€6.36€1.90€2.3016
May ’24€3.66
€4.29
+17.2%
24.8%€6.22€1.85€1.8616
Apr ’24€4.05
€4.27
+5.4%
24.4%€6.33€1.88€1.8016
Mar ’24€3.84
€4.21
+9.6%
24.3%€6.48€1.92€1.9917
Feb ’24€3.61
€3.79
+5.1%
22.4%€5.40€1.88€1.7217
Jan ’24€3.27
€3.70
+13.3%
24.7%€5.53€1.92€2.1617
Analyst Price Target
Consensus Narrative from 16 Analysts
€3.04
Fair Value
0.8% undervalued intrinsic discount
16
Number of Analysts

Analyst Forecast: Target price is less than 20% higher than the current share price.


Discover undervalued companies

Company Analysis and Financial Data Status

DataLast Updated (UTC time)
Company Analysis2025/01/20 17:15
End of Day Share Price 2025/01/17 00:00
Earnings2024/09/30
Annual Earnings2023/12/31

Data Sources

The data used in our company analysis is from S&P Global Market Intelligence LLC. The following data is used in our analysis model to generate this report. Data is normalised which can introduce a delay from the source being available.

PackageDataTimeframeExample US Source *
Company Financials10 years
  • Income statement
  • Cash flow statement
  • Balance sheet
Analyst Consensus Estimates+3 years
  • Forecast financials
  • Analyst price targets
Market Prices30 years
  • Stock prices
  • Dividends, Splits and Actions
Ownership10 years
  • Top shareholders
  • Insider trading
Management10 years
  • Leadership team
  • Board of directors
Key Developments10 years
  • Company announcements

* example for US securities, for non-US equivalent regulatory forms and sources are used.

Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.

Analysis Model and Snowflake

Details of the analysis model used to generate this report is available on our Github page, we also have guides on how to use our reports and tutorials on Youtube.

Learn about the world class team who designed and built the Simply Wall St analysis model.

Industry and Sector Metrics

Our industry and section metrics are calculated every 6 hours by Simply Wall St, details of our process are available on .

Analyst Sources

Hua Hong Semiconductor Limited is covered by 47 analysts. 19 of those analysts submitted the estimates of revenue or earnings used as inputs to our report. Analysts submissions are updated throughout the day.

AnalystInstitution
Zhongheng LinBOCI Research Ltd.
Qinrui ZhangBOCI Research Ltd.
Wenzhou HuBOCI Research Ltd.