Changes in Hong Kong stocks | Huahong Hongli (01347) rose more than 6%, and the recovery in the average sales price of the company's wafers has been confirmed, and gross margin for the third quarter brought positive surprises

The Zhitong Finance App learned that Huahong Hongli (01347) rose more than 6% in the intraday period. As of press release, it had risen 3.79% to HK$78, with a turnover of HK$2,356 billion.

According to the news, Bank of America Securities released a research report saying that the recovery in the average sales price of Huahong Hongli wafers has been confirmed, and profits have entered an upward cycle. The bank pointed out that the average sales price of wafers in the third quarter should be 517 US dollars per sheet, up 11% from quarter to quarter and 14% from year to year, the highest quarterly increase in the past ten years. Management confirmed that there is a serious shortage of production capacity. Currently, about 50% of orders have not been met, and stated that the company is expected to achieve an average sales price increase of 10% to 15% year-on-year in 2026 and 2027, respectively, and that gross margin will improve to more than 25%. The bank estimates 28%, compared with gross margins of 12% and 22% in 2025 and 2026, respectively.

UBS, on the other hand, said that Huahong Hongli's third-quarter results beat expectations. In particular, gross margin brought positive surprises, and viewed the company more positively. The company directed fourth-quarter revenue to increase by 9.4% to 10.4%, and gross margin to increase by 0.4 to 1.4 percentage points quarterly. The bank currently expects revenue growth of 46% and 24% year-on-year in 2027 and 2028, respectively.