Hua Hong's Q3 profit surges 147% to record revenue of $987m
Hua Hong Silicon's Q3 net profit rose 147% year-on-year to $123m, with record revenue of $987m. The company expects continued growth driven by AI demand and capacity expansion.
Hua Hong Silicon reported a net profit of US$123 million for the third quarter, surging 147 per cent year-on-year and 77.7 per cent quarter-on-quarter. Revenue reached a record US$987 million, up 19.9 per cent from a year earlier and 9.9 per cent from the previous quarter. Gross margin improved to 24.6 per cent, up 7.6 percentage points year-on-year and 4.7 percentage points quarter-on-quarter.
Chairman and president Bai Peng attributed the strong performance to high utilisation rates at the company's wafer plants, with both shipment volumes and average selling prices rising steadily. He said expansion projects were progressing as planned.
Bai noted that demand for artificial-intelligence related products continued to drive the global semiconductor market, while the industrial and automotive sectors were showing gradual improvement. He warned that even as the company expands capacity, supply in certain niche segments was tightening, and predicted the trend of rising volumes and prices would continue for some time.
Hua Hong forecast fourth-quarter revenue of between US$1.08 billion and US$1.09 billion, with gross margin expected to range from 25 per cent to 26 per cent.