Wafer foundry Hua Hong Grace Semiconductor Ltd. (1347.HK; 688347.SH) reported on Thursday that its revenue rose 19.9% year-on-year to a record $987.1 million in the third quarter. Its profit increased 147.1% to $123.4 million for the period, while its gross margin rose by 7.6 percentage points to 24.6%.
The company completed its acquisition of Shanghai Huali Microelectronics during the quarter and restated its year-ago figures to include the acquired business. Excluding Huali, the company’s revenue in the latest quarter was $803.4 million and its gross margin was 19.9%, both above earlier guidance. Its profit on that basis was $68.83 million.
The company said wafer shipments and average selling prices both increased during the quarter, with its 12-inch business accounting for 70.7% of revenue. Continued growth in AI-related demand and a gradual recovery in industrial and automotive markets boosted demand for products including microcontrollers, flash memory and power devices, with supply tightening in some segments.
The company said it expects shipments and prices to continue rising. It forecast fourth-quarter revenue of $1.08 billion to $1.09 billion and a gross margin of 25% to 26%, while continuing construction of the third phase of its 12-inch production line in the city of Wuxi.
Hua Hong Grace’s shares opened lower on Friday but recovered to trade up 2.9% at HK$69.25 by the midday break. The stock is down 6.55% this year.
By Lee Shih Ta
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