Evaluating Hua Hong Semiconductor (SEHK:1347) Valuation After Higher Sales, Lower Profits, and New Q4 Revenue Guidance

Hua Hong Semiconductor (SEHK:1347) just reported its results for the first nine months of 2025, showing higher sales but a significant drop in net income. The company also released revenue guidance for the upcoming quarter.

See our latest analysis for Hua Hong Semiconductor.

Hua Hong Semiconductor’s share price has surged 298% year to date, reflecting renewed optimism following its upbeat sales and Q4 revenue guidance, despite the recent pressure on profits. Over the past five years, total shareholder return stands at 126%. This suggests long-term momentum remains intact.

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With the stock’s meteoric rise despite falling profits, investors must decide whether Hua Hong remains undervalued after recent gains or if future growth is already reflected in current prices. The question remains: is there still a buying opportunity ahead?

Most Popular Narrative: 49.1% Overvalued

Hua Hong Semiconductor’s most popular narrative sets its fair value well below the recent close price, raising big questions about what supports today’s premium. The stage is set for debate over whether rapid growth and AI momentum can keep justifying such lofty valuations.

The industry’s rapid technological evolution and movement toward more advanced manufacturing processes may leave Hua Hong, which continues to focus on mature and specialty nodes, increasingly marginalized in high-growth segments. This could reduce long-term growth potential and risk stagnation or decline in both revenue and net margin competitiveness.

Read the complete narrative.

Curious which bold growth forecasts are powering this premium price tag? The narrative’s calculation leans on ambitious margin improvements and unprecedented revenue gains. The projections behind this valuation might surprise you.

Result: Fair Value of $53.96 (OVERVALUED)

Have a read of the narrative in full and understand what's behind the forecasts.

However, strong AI-led demand and capacity expansion could turbocharge Hua Hong’s growth. This could potentially upend the current “overvalued” thesis if momentum accelerates.

Find out about the key risks to this Hua Hong Semiconductor narrative.

Build Your Own Hua Hong Semiconductor Narrative

If you want to question these assumptions or dig further into the numbers yourself, you can easily craft your own narrative in just minutes. Do it your way.

A great starting point for your Hua Hong Semiconductor research is our analysis highlighting 1 key reward and 3 important warning signs that could impact your investment decision.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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