Daiwa Capital Markets boosted its price target for HUA HONG SEMI (01347.HK) to $116 from $110, citing an impending upcycle in average selling prices (ASP) driven by artificial intelligence demand. The firm reiterated its "Buy" rating on the chipmaker.
"The company is entering an ASP upcycle in 2026, primarily driven by AI-led demand for mature-node processes and an overall semiconductor industry recovery," Daiwa's report, published April 8, 2026, said.
The report highlighted robust manufacturing activity, with capacity utilization for the first quarter of 2026 already nearing full capacity. Daiwa's analysts see further room for growth in 2026, supported by the broader industry rebound. The previous price target was $110, and the new $116 target reflects increased confidence in the company's earnings power.
This price target adjustment suggests that Daiwa anticipates a significant increase in profitability for HUA HONG SEMI, as rising demand allows for higher pricing on its chips. The report also pointed to the potential injection of assets from Shanghai Huali Microelectronics Corporation (HLMC) as a future growth driver for the company over the next three to four years.
The bullish outlook from Daiwa could increase investor focus on the stock ahead of the expected 2026 demand surge. Investors will be watching for official company guidance and further signs of the AI-driven demand materializing in the coming quarters.
This article is for informational purposes only and does not constitute investment advice.
