Hua Hong Semiconductor Q3 Profit Surges 147% YoY, Revenue Hits Record High
nashnova research
Hua Hong Semiconductor posted Q3 revenue of US$987.1 million, up nearly 20% year-on-year, while profit surged 147% — driven by rising prices and volumes plus synergies from the Hua Li integration. Management expects the upcycle to continue.
What are the headline numbers?
Revenue hit US$987.1 million, up 19.9% YoY and 9.9% QoQ — a new all-time high.
Profit attributable to shareholders reached US$123.4 million, up 147.1% YoY and 77.7% QoQ; basic EPS was US$0.066.
This means → profit is growing far faster than revenue, which tells us the company is not just shipping more wafers — it is earning more on every wafer it ships.
Why is the gross margin improving so fast?
Gross margin came in at 24.6%, up 7.6 percentage points YoY and 4.7 pp QoQ.
The main driver is higher average selling prices (ASP), partly offset by rising depreciation costs from new equipment.
In plain terms = Hua Hong is charging more per chip. New equipment adds depreciation, but pricing gains are outrunning the cost increase.
How does the business look without Hua Li?
Stripping out Hua Li — a subsidiary Hua Hong acquired and integrated — revenue was US$803.4 million, above the prior-quarter guidance range of US$770–780 million.
Ex-Hua Li gross margin was 19.9%, also above guidance of 16%–18%.
This means → even without the acquired business, Hua Hong's legacy operations are beating expectations on their own — the beat is not just a consolidation artifact.
Where is the growth coming from?
Twelve-inch wafers — the larger, more advanced production line — now account for 70.7% of revenue, making them the dominant contributor.
Management noted that AI-related products continue to drive global semiconductor demand, while industrial and automotive markets are gradually recovering.
Demand for MCUs, flash memory, power management, and power devices is rising; even as the company expands capacity, supply in some segments is tightening.
Can Hua Hong keep beating guidance?
Management stated explicitly that it expects "the trend of rising volumes and prices to continue for some time."
The Hua Li integration has proven to deliver financial gains and operational synergies; fabs are running at high utilization.
This reflects management's confidence in the medium-term cycle. The market, however, will watch two things: the pace of capacity expansion and whether supply-demand balance holds across sub-segments — these are the key checkpoints for whether results can keep exceeding guidance.
市场有风险，内容仅供研究参考，不构成投资建议。