Changes in Hong Kong stocks | Huahong Semiconductor (01347) rose nearly 6% and the acquisition of Hualiwei is expected to significantly increase the company's performance and total assets

The Zhitong Finance App learned that Huahong Semiconductor (01347) has increased by nearly 6%, and the cumulative increase since December 17 has exceeded 40%. As of press release, it rose 5.6% to HK$94.3, with a turnover of HK$1,016 billion.

According to the news, Huahong Semiconductor recently announced that it plans to acquire about 97.5% of Hualiwei's shares at a transaction price of 8.268 billion yuan. After the integration is completed, the company's share in the global foundry market is expected to increase further, and supply capacity in specialty process fields may increase. At the same time, raise capital or help the company promote production line upgrades, further expand production, and improve R&D capabilities.

Huatai Securities released a research report saying that the 2024 data was used to prepare estimates: on the profit side, Hualiwei is a high-quality foundry asset, and its injection may immediately increase performance. Net profit due to exam preparation is expected to increase 151% from 380 million yuan to 960 million yuan, driving EPS to increase 127% from 0.22 yuan to 0.50 yuan, and profitability may increase by leaps and bounds. On the asset side, if supporting financing is considered, the company will introduce about 7.6 billion yuan in cash “living water”, and the company's total assets/net assets to mother may increase by 16%/21%, greatly enhancing liquidity and helping upgrade production lines.