Hua Hong Semiconductor Limited (1347.HK) stock analysis

In our weekly check, Hua Hong Semiconductor Limited is graded D (A to F). Of 24 checks on debt, profit, cash flow and trend: 9 pass, warnings: 6, red flags: 9.

About Hua Hong Semiconductor Limited

Hua Hong Semiconductor Limited is a Technology company (Semiconductors) based in China, listed on HKSE as 1347.HK.

What our checks show for 1347.HK

Red flags

• Operating profit does not cover the interest bill (-0.7x): interest is paid from cash or new debt.
• The net margin fell by 12.3 points over 5 years, to 3.8%: the company keeps less of each sale as profit.
• The gross margin fell by 10.4 points, to 17.3%: costs are rising faster than prices.
• The net margin is only 3.8%: little room if costs rise.
• Free cash flow is negative (-44.3% of revenue): the business spends more cash than it brings in.
• The price swings a lot: 80.1% annual volatility. Expect large ups and downs.
• The stock has fallen as much as 78% from a peak. Would you have held through that?
• Return on capital (ROCE) is zero or negative: the business does not earn on the money put into it.
• Pay in shares equals 0% of free cash flow: it dilutes shareholders.

Warning signs

• Revenue grew only 2.8% a year over the last 3 years.
• Earnings per share fell 44.5% a year over the last 3 years.
• Net profit fell 39.2% a year over the last 3 years.
• Recovering from its deepest fall took about 1.6 years.
• Beta 1.38: the stock usually moves more than the market, both up and down.
• The share count grew by 16.3% in 2 years: each shareholder owns a smaller slice.

Strengths

• Debt is low: 0.59x equity.
• Operating cash flow is 9.86x net profit: the profit arrives as real cash.
• Analysts expect earnings per share to grow about 70% a year over the next years.
• Analysts expect revenue to grow about 21% a year over the next years.
• Analysts expect the net margin to improve by 5.5 points from today's 3.8%.
• A large company: market value $16.59 billion.

Next earnings report: 2026-11-05

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Questions

What grade does Hua Hong Semiconductor Limited (1347.HK) have?

In our weekly check, Hua Hong Semiconductor Limited is graded D (A to F). Of 24 checks on debt, profit, cash flow and trend: 9 pass, warnings: 6, red flags: 9. The grade is a risk check, not a buy or sell recommendation.

What are the main risks of 1347.HK stock?

This week's biggest flags for Hua Hong Semiconductor Limited: Weak interest cover, Margins falling, Gross margin falling. In total 15 of 24 checks show a warning or a red flag.

What does Hua Hong Semiconductor Limited do?

Hua Hong Semiconductor Limited is a Technology company (Semiconductors) based in China, listed on HKSE as 1347.HK.

When does Hua Hong Semiconductor Limited report earnings next?

The next earnings report is expected on 2026-11-05. We re-run the checks every week, so the grade can change after it.

The grade is a risk check, not a price forecast, and not investment advice. In our 10-year test (S&P 500, 2016-2026), stocks we graded A or B fell more than 30% 2-3 times less often than D or F, without a lower average return.

Updated 2026-10-24

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