Changes in Hong Kong stocks | Huahong Semiconductor (01347) rose more than 4% and plans to spend 8.2 billion dollars to acquire Huali Micro Asset Injection is expected to increase performance

The Zhitong Finance App learned that Huahong Semiconductor (01347) rose more than 4%. As of press release, it had risen 4.23% to HK$88.65, with a turnover of HK$3,227 billion.

According to the news, Huahong recently announced that it plans to spend 8.268 billion yuan to acquire 97.4988% of Hualiwei's shares and raise no more than 7.556 billion yuan in supporting capital. Through this transaction, the competition between Huahong Company and Hualiwei in the 65/55nm and 40nm industry was substantially resolved. After the integration is completed, Huahong will add 38,000 pieces/month of 65/55nm and 40nm production capacity, and the 12-inch wafer foundry production capacity will be further increased.

Huatai Securities pointed out that the 2024 data were used to prepare estimates: on the profit side, Hualiwei is a high-quality foundry asset, and its injection may immediately increase performance. Exam preparation net profit is expected to increase 151% from 380 million yuan to 960 million yuan, driving EPS to increase by 127% from 0.22 yuan to 0.50 yuan, and profitability may increase by leaps and bounds; on the asset side, if supporting financing is considered, the company will introduce about 7.6 billion yuan in cash “living water”, which may increase the company's total assets/net assets by 16%/21%, greatly enhancing liquidity and helping to upgrade production lines.