In its latest research report, CCB International adjusted its profit forecasts and book value per share projections for Huahong Semiconductor over the 2025-2027 period, citing increased depreciation from new factories as a factor impacting gross profit margins. Despite this, the firm anticipates a notable resurgence in power device and MCU demand in the second half of the year, fueled by the recovery in industrial and automotive market demand. Consequently, CCB International has elevated its target price for Huahong Semiconductor's H shares by 20%, setting it at HK$36, while maintaining its 'Outperform' rating. Huahong Semiconductor's first-quarter revenue met market expectations, yet gross profit margin and net profit fell short, potentially due to new capacity exerting pressure on utilization rates and gross margins. Nonetheless, the company anticipates maintaining capacity utilization above 90% throughout 2025.