Hua Hong Semiconductor Limited

DB:1HH Stock Report

Market Cap: €5.8b

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.

Below Fair Value: 1HH (€2.5) is trading below our estimate of fair value (€8.87)

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 Ratio38x
EarningsUS$118.69m
Market CapUS$6.09b

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 Average15.1x
IFX Infineon Technologies
22.3x17.0%€39.0b
ELG Elmos Semiconductor
10.3x4.1%€1.1b
WAF Siltronic
14.7x-15.1%€1.4b
AIXA AIXTRON
13.1x6.2%€1.5b
1HH Hua Hong Semiconductor
38x31.0%€47.4b

Price-To-Earnings vs Peers: 1HH is expensive based on its Price-To-Earnings Ratio (38x) compared to the peer average (15.1x).

Price to Earnings Ratio vs Industry

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

1 CompanyPrice / EarningsEstimated GrowthMarket Cap
1HH 38.0xIndustry Avg. 14.7xNo. of Companies7PE01632486480+
1 CompanyEstimated GrowthMarket Cap
No more companies

Price-To-Earnings vs Industry: 1HH is expensive based on its Price-To-Earnings Ratio (38x) compared to the European Semiconductor industry average (14.9x).

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 Ratio38x
Fair PE Ratio29.9x

Price-To-Earnings vs Fair Ratio: 1HH is expensive based on its Price-To-Earnings Ratio (38x) compared to the estimated Fair Price-To-Earnings Ratio (29.9x).

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€2.50
€3.05
+22.1%
21.6%€3.95€2.03n/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€0.82n/a17
Dec ’24€2.04
€2.81
+37.7%
38.9%€5.26€0.83n/a18
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
Dec ’23€3.24
€3.74
+15.6%
25.1%€5.68€1.97€2.0417
Nov ’23€2.47
€4.14
+68.1%
31.5%€6.78€2.05€2.3016

Analyst Forecast: Target price is more than 20% higher than the current share price, but analysts are not within a statistically confident range of agreement.

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