Chipmaker Hua Hong's HK shares drop most in 3 months after weak results

Hua Hong Grace Semiconductor

10/11/2023 02:21

** Hong Kong shares of China's chipmaker Hua Hong
Semiconductor Ltd  1347.HK  drop 10.6% to HK$18.02, the biggest
one-day pct fall since Aug 7 
    ** Stock hits the lowest since Oct 26, and is biggest pct
loser in Hang Seng Tech Index  .HSTECH  and the Hang Seng
Composite Index  .HSCI  
    ** Shanghai shares  688347.SS  down nearly 5%  
    ** Co says its 3Q net profit was $13.9 mln, as compared with
$103.9 mln in 3Q 2022 and $78.5 mln in 2Q 2023, and revenue was
down 9.7% YoY at $568.5 bln and was 10% below 2Q 2023
    ** Says gross margin was 16.1%, 21.1 percentage points lower
than 3Q 2022 and 11.6 percentage points below 2Q 2023
    ** Co expects 4Q revenue to be in the $450 mln-$500 mln
range and gross margin to be in the 2%-5% range
    ** Jefferies maintains "hold" rating and cuts PT to HK$21
from HK$25, saying 3Q23 missed while 4Q23 gross margin guidance
plummets to all time low since listed 
    ** Hong Kong stock down 33.7% YTD 

 (Reporting by Donny Kwok)
 ((donny.kwok@thomsonreuters.com))