Goldman Sachs raised its target price on Huahong Hongli (01347.HK) to HK$333
from HK$174 and reiterated a Buy rating, citing stronger demand for AI chips and
data-center power-management ICs as large-model capabilities improve (citing
Meituan-W’s LongCat2.0). The bank expects generative AI to sustain demand,
forecasts continued ramp-up of 12‑inch capacity and a product-mix shift toward
40nm and 28nm, and lifted net profit forecasts for FY2027–FY2029 by 1%–8%.
Goldman projects operating margin to rise from 1% in FY2026 to 4%/8%/12% in
FY2027/FY2028/FY2029, normalizing at 14%–17% in FY2030–FY2031.
