Key Takeaways
- Net profit soared 458.1% year-over-year to $20.929 million.
- Revenue grew 22.2% from the prior year to $661 million.
- Q2 revenue is guided to be between $690 million and $700 million.
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Hua Hong Semi Q1 profit surges 458% on strong chip demand
Hua Hong Semiconductor (01347.HK) reported first-quarter net profit surged 458.1 percent year-over-year to $20.929 million, as revenue climbed on robust demand for its chips.
Revenue for the quarter ended in March rose 22.2 percent from a year earlier to $661 million, the company said in a stock exchange filing. Gross margin was 13 percent, an increase of 3.8 percentage points from the same period last year and holding flat from the previous quarter.
The company, China's second-largest chip foundry after competitor SMIC (00981.HK), guided for continued growth. It forecast second-quarter sales to be between $690 million and $700 million, with gross margins expected to improve to a range of 14 to 16 percent. Earnings per share for the first quarter stood at $0.012.
No dividend was declared for the period.
Financial Highlights: Q1 2026
The strong results and bullish forecast may bolster investor confidence in China's semiconductor sector amid ongoing efforts to increase domestic production. Investors will watch for the second-quarter results, typically announced in August, to see if margin expansion continues as guided.
This article is for informational purposes only and does not constitute investment advice.
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