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1347

Hua Hong Semiconductor SEHK:1347 Stock Report

Last Price

HK$18.00

Market Cap

HK$23.5b

7D

-7.1%

1Y

-54.6%

Updated

04 Oct, 2022

Data

Company Financials +
1347 fundamental analysis
Snowflake Score
Valuation5/6
Future Growth1/6
Past Performance5/6
Financial Health5/6
Dividends0/6

1347 Stock Overview

Hua Hong Semiconductor Limited, an investment holding company, manufactures and sells semiconductor products.

Hua Hong Semiconductor Competitors

Price History & Performance

Summary of all time highs, changes and price drops for Hua Hong Semiconductor
Historical stock prices
Current Share PriceHK$18.00
52 Week HighHK$53.75
52 Week LowHK$17.50
Beta1.22
1 Month Change-19.10%
3 Month Change-29.96%
1 Year Change-54.60%
3 Year Change11.94%
5 Year Change61.58%
Change since IPO67.60%

Recent News & Updates

Shareholder Returns

1347HK SemiconductorHK Market
7D-7.1%-2.9%-4.3%
1Y-54.6%-32.9%-28.3%

Return vs Industry: 1347 underperformed the Hong Kong Semiconductor industry which returned -32.9% over the past year.

Return vs Market: 1347 underperformed the Hong Kong Market which returned -28.3% over the past year.

Price Volatility

Is 1347's price volatile compared to industry and market?
1347 volatility
1347 Average Weekly Movement6.6%
Semiconductor Industry Average Movement6.6%
Market Average Movement6.5%
10% most volatile stocks in HK Market12.7%
10% least volatile stocks in HK Market3.1%

Stable Share Price: 1347 is not significantly more volatile than the rest of Hong Kong stocks over the past 3 months, typically moving +/- 7% a week.

Volatility Over Time: 1347's weekly volatility (7%) has been stable over the past year.

About the Company

FoundedEmployeesCEOWebsite
19976,300Junjun Tanghttps://www.huahonggrace.com

Hua Hong Semiconductor Limited, an investment holding company, manufactures and sells semiconductor products. The company provides embedded non-volatile memory, standard logic and mixed-signal, radio frequency, power management integrated circuits, power discrete, and automotive solutions. It also offers foundry services; and design services comprising standard and customized IP development, full-custom layout design, and customer-specific integrated solutions, as well as design support and tape out services.

Hua Hong Semiconductor Fundamentals Summary

How do Hua Hong Semiconductor's earnings and revenue compare to its market cap?
1347 fundamental statistics
Market CapHK$23.48b
Earnings (TTM)HK$2.91b
Revenue (TTM)HK$17.23b

8.1x

P/E Ratio

1.4x

P/S Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
1347 income statement (TTM)
RevenueUS$2.20b
Cost of RevenueUS$1.53b
Gross ProfitUS$662.66m
Other ExpensesUS$291.45m
EarningsUS$371.21m

Last Reported Earnings

Jun 30, 2022

Next Earnings Date

n/a

Earnings per share (EPS)0.28
Gross Margin30.19%
Net Profit Margin16.91%
Debt/Equity Ratio43.5%

How did 1347 perform over the long term?

See historical performance and comparison
We’ve recently updated our valuation analysis.

Valuation

Is 1347 undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

5/6

Valuation Score 5/6

  • Price-To-Earnings vs Peers

  • Price-To-Earnings vs Industry

  • Price-To-Earnings vs Fair Ratio

  • Below Fair Value

  • Significantly Below Fair Value

  • Analyst Forecast

Key Valuation Metric

Which metric is best to use when looking at relative valuation for 1347?

Other financial metrics that can be useful for relative valuation.

1347 key valuation metrics and ratios. From Price to Earnings, Price to Sales and Price to Book to Price to Earnings Growth Ratio, Enterprise Value and EBITDA.
Key Statistics
Enterprise Value/Revenue1.7x
Enterprise Value/EBITDA4.5x
PEG Ratio2.5x

Price to Earnings Ratio vs Peers

How does 1347's PE Ratio compare to its peers?

1347 PE Ratio vs Peers
The above table shows the PE ratio for 1347 vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyPEEstimated GrowthMarket Cap
Peer Average12.2x
1385 Shanghai Fudan Microelectronics Group
31.3x23.4%HK$54.3b
981 Semiconductor Manufacturing International
9x-4.7%HK$177.7b
2878 Solomon Systech (International)
4xn/aHK$1.1b
85 China Electronics Huada Technology
4.7xn/aHK$1.3b
1347 Hua Hong Semiconductor
8.1x3.2%HK$23.5b

Price-To-Earnings vs Peers: 1347 is good value based on its Price-To-Earnings Ratio (8.1x) compared to the peer average (12.2x).


Price to Earnings Ratio vs Industry

How does 1347's PE Ratio compare vs other companies in the Asian Semiconductor Industry?

Price-To-Earnings vs Industry: 1347 is good value based on its Price-To-Earnings Ratio (8.1x) compared to the Asian Semiconductor industry average (15.7x)


Price to Earnings Ratio vs Fair Ratio

What is 1347'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.

1347 PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio8.1x
Fair PE Ratio14.4x

Price-To-Earnings vs Fair Ratio: 1347 is good value based on its Price-To-Earnings Ratio (8.1x) compared to the estimated Fair Price-To-Earnings Ratio (14.4x).


Share Price vs Fair Value

What is the Fair Price of 1347 when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: 1347 (HK$18) is trading below our estimate of fair value (HK$23)

Significantly Below Fair Value: 1347 is trading below fair value by more than 20%.


Analyst Price Targets

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

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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Future Growth

How is Hua Hong Semiconductor forecast to perform in the next 1 to 3 years based on estimates from 19 analysts?

Future Growth Score

1/6

Future Growth Score 1/6

  • Earnings vs Savings Rate

  • Earnings vs Market

  • High Growth Earnings

  • Revenue vs Market

  • High Growth Revenue

  • Future ROE


3.2%

Forecasted annual earnings growth

Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: 1347's forecast earnings growth (3.2% per year) is above the savings rate (1.6%).

Earnings vs Market: 1347's earnings (3.2% per year) are forecast to grow slower than the Hong Kong market (16.8% per year).

High Growth Earnings: 1347's earnings are forecast to grow, but not significantly.

Revenue vs Market: 1347's revenue (9.6% per year) is forecast to grow slower than the Hong Kong market (9.7% per year).

High Growth Revenue: 1347's revenue (9.6% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: 1347's Return on Equity is forecast to be low in 3 years time (7.9%).


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Past Performance

How has Hua Hong Semiconductor performed over the past 5 years?

Past Performance Score

5/6

Past Performance Score 5/6

  • Quality Earnings

  • Growing Profit Margin

  • Earnings Trend

  • Accelerating Growth

  • Earnings vs Industry

  • High ROE


11.1%

Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: 1347 has high quality earnings.

Growing Profit Margin: 1347's current net profit margins (16.9%) are higher than last year (11.7%).


Past Earnings Growth Analysis

Earnings Trend: 1347's earnings have grown by 11.1% per year over the past 5 years.

Accelerating Growth: 1347's earnings growth over the past year (168.1%) exceeds its 5-year average (11.1% per year).

Earnings vs Industry: 1347 earnings growth over the past year (168.1%) exceeded the Semiconductor industry 73.3%.


Return on Equity

High ROE: 1347's Return on Equity (9%) is considered low.


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Financial Health

How is Hua Hong Semiconductor's financial position?

Financial Health Score

5/6

Financial Health Score 5/6

  • Short Term Liabilities

  • Long Term Liabilities

  • Debt Level

  • Reducing Debt

  • Debt Coverage

  • Interest Coverage

Financial Position Analysis

Short Term Liabilities: 1347's short term assets ($2.6B) exceed its short term liabilities ($1.2B).

Long Term Liabilities: 1347's short term assets ($2.6B) exceed its long term liabilities ($1.4B).


Debt to Equity History and Analysis

Debt Level: 1347 has more cash than its total debt.

Reducing Debt: 1347's debt to equity ratio has increased from 6% to 43.5% over the past 5 years.

Debt Coverage: 1347's debt is well covered by operating cash flow (48.6%).

Interest Coverage: 1347's interest payments on its debt are well covered by EBIT (57.4x coverage).


Balance Sheet


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Dividend

What is Hua Hong Semiconductor current dividend yield, its reliability and sustainability?

Dividend Score

0/6

Dividend Score 0/6

  • Notable Dividend

  • High Dividend

  • Stable Dividend

  • Growing Dividend

  • Earnings Coverage

  • Cash Flow Coverage


1.55%

Forecast Dividend Yield

Dividend Yield vs Market

Hua Hong Semiconductor Dividend Yield vs Market
How does Hua Hong Semiconductor dividend yield compare to the market?
SegmentDividend Yield
Company (Hua Hong Semiconductor)0%
Market Bottom 25% (HK)3.1%
Market Top 25% (HK)9.0%
Industry Average (Semiconductor)2.4%
Analyst forecast in 3 Years (Hua Hong Semiconductor)1.5%

Notable Dividend: Unable to evaluate 1347's dividend yield against the bottom 25% of dividend payers, as the company has not reported any recent payouts.

High Dividend: Unable to evaluate 1347's dividend yield against the top 25% of dividend payers, as the company has not reported any recent payouts.


Stability and Growth of Payments

Stable Dividend: Insufficient data to determine if 1347's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if 1347's dividend payments have been increasing.


Earnings Payout to Shareholders

Earnings Coverage: 1347 is not paying a notable dividend for the Hong Kong market.


Cash Payout to Shareholders

Cash Flow Coverage: Unable to calculate sustainability of dividends as 1347 has not reported any payouts.


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Management

How experienced are the management team and are they aligned to shareholders interests?

4.8yrs

Average management tenure


CEO

Junjun Tang (57 yo)

3.42yrs

Tenure

US$880,000

Compensation

Mr. Junjun Tang has been President and Executive Director at Hua Hong Semiconductor Limited since May 1, 2019. He served as Vice President, Executive Vice President and Secretary of the party committee of...


CEO Compensation Analysis

Junjun Tang's Compensation vs Hua Hong Semiconductor Earnings
How has Junjun Tang's remuneration changed compared to Hua Hong Semiconductor's earnings?
DateTotal Comp.SalaryCompany Earnings
Jun 30 2022n/an/a

US$371m

Mar 31 2022n/an/a

US$322m

Dec 31 2021US$880kUS$179k

US$261m

Sep 30 2021n/an/a

US$172m

Jun 30 2021n/an/a

US$138m

Mar 31 2021n/an/a

US$112m

Dec 31 2020US$705kUS$167k

US$99m

Sep 30 2020n/an/a

US$82m

Jun 30 2020n/an/a

US$110m

Mar 31 2020n/an/a

US$135m

Dec 31 2019US$404kUS$100k

US$162m

Compensation vs Market: Junjun's total compensation ($USD880.00K) is about average for companies of similar size in the Hong Kong market ($USD715.67K).

Compensation vs Earnings: Junjun's compensation has increased by more than 20% in the past year.


Leadership Team

Experienced Management: 1347's management team is considered experienced (4.8 years average tenure).


Board Members

Experienced Board: 1347's board of directors are considered experienced (7.5 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

SEHK:1347 Recent Insider Transactions by Companies or Individuals
DateValueNameEntityRoleSharesMax Price
28 Dec 21SellHK$150,376,784Huaxin Investment Management Co., Ltd.Company3,616,000HK$41.59
22 Nov 21SellHK$16,379,121Huaxin Investment Management Co., Ltd.Company346,000HK$47.34

Ownership Breakdown

What is the ownership structure of 1347?
Owner TypeNumber of SharesOwnership Percentage
Institutions231,234,11117.7%
General Public355,298,35327.2%
VC/PE Firms718,068,17255.0%

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Top 25 shareholders own 69.51% of the company
OwnershipNameSharesCurrent ValueChange %Portfolio %
26.86%
Shanghai Hua Hong International Inc.
350,401,100$6.3b0%100%
14.48%
Shanghai Alliance Investment Ltd.
188,961,147$3.4b0%4.87%
13.7%
Huaxin Investment Management Co., Ltd.
178,705,925$3.2b0%no data
2.12%
BlackRock, Inc.
27,606,541$496.9m2.69%no data
1.88%
AEGON-Industrial Fund Management Co., Ltd.
24,512,293$441.2m0%0.31%
1.49%
Invesco Great Wall Fund Management Co. Ltd
19,448,883$350.1m0%0.23%
1.34%
The Vanguard Group, Inc.
17,489,140$314.8m0.09%no data
1.02%
Baron Capital Group, Inc.
13,276,695$239.0m11.86%0.08%
0.86%
Harvest Fund Management Co., Ltd.
11,263,920$202.8m-0.43%0.09%
0.66%
China Asset Management Co., Ltd.
8,651,653$155.7m0.26%0.04%
0.65%
Dimensional Fund Advisors LP
8,431,653$151.8m2.43%no data
0.63%
Norges Bank Investment Management
8,203,265$147.7m0%no data
0.57%
CSOP Asset Management Limited
7,413,482$133.4m6.06%0.75%
0.43%
Fullgoal Fund Management Co., Ltd.
5,556,000$100.0m0%0.04%
0.4%
Franklin Resources, Inc.
5,164,861$93.0m2.01%0.01%
0.34%
Principal Global Investors, LLC
4,486,000$80.7m0%0.01%
0.33%
ICBC Credit Suisse Asset Management Co., Ltd.
4,240,000$76.3m0%0.05%
0.28%
Invesco Capital Management LLC
3,642,916$65.6m-0.08%0.01%
0.28%
GF Fund Management Co., Ltd.
3,616,000$65.1m0%0.02%
0.23%
Allianz Asset Management AG
3,058,000$55.0m0%0.01%
0.21%
C Worldwide Asset Management FondsmÆGlerselskab A/S
2,771,000$49.9m-5.68%0.06%
0.21%
Lombarda China Fund Management Co., Ltd.
2,743,510$49.4m0%0.02%
0.2%
Eastspring Investments (Singapore) Limited
2,590,000$46.6m0%0.03%
0.18%
Geode Capital Management, LLC
2,334,995$42.0m2.63%no data
0.18%
China Southern Asset Management Co., Ltd.
2,310,000$41.6m0%0.02%

Company Information

Hua Hong Semiconductor Limited's employee growth, exchange listings and data sources


Key Information

  • Name: Hua Hong Semiconductor Limited
  • Ticker: 1347
  • Exchange: SEHK
  • Founded: 1997
  • Industry: Semiconductors
  • Sector: Semiconductors
  • Implied Market Cap: HK$23.483b
  • Shares outstanding: 1.30b
  • Website: https://www.huahonggrace.com

Number of Employees


Location

  • Hua Hong Semiconductor Limited
  • 288 Halei Road
  • Zhangjiang Hi-Tech Park
  • Shanghai
  • 201203
  • China


Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
1347SEHK (The Stock Exchange of Hong Kong Ltd.)YesOrdinary SharesHKHKDOct 2014
1HHDB (Deutsche Boerse AG)YesOrdinary SharesDEEUROct 2014
1347SHSC (Stock Exchange of Hong Kong Limited - Shanghai - Hong Kong Stock Connect)YesOrdinary SharesHKHKDOct 2014
1347SZSC (The Stock Exchange of Hong Kong - Shenzhen - Hong Kong Stock Connect)YesOrdinary SharesHKHKDOct 2014
HHUS.FOTCPK (Pink Sheets LLC)YesOrdinary SharesUSUSDOct 2014

Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2022/10/04 00:00
End of Day Share Price2022/10/03 00:00
Earnings2022/06/30
Annual Earnings2021/12/31


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.