On September 30, Hong Kong chip stocks collectively strengthened. Driven by the strong sector trend, Huahong Semiconductor once rose by more than 7% during the session, reaching a high of HK$77.8 per share, setting a record high intraday.

On the news front, on September 30, Huahong Company issued an announcement stating that the company plans to purchase Hualiwei’s equity and raise supporting funds by issuing shares and paying cash. After the completion of this transaction, Hualiwei will become the company’s holding subsidiary. This transaction is expected to constitute an associated transaction, but does not constitute a major asset restructuring or restructuring listing.

Previously, Goldman Sachs released a research report, raising Huahong Semiconductor’s rating from “neutral” to “buy”, and raised its target price by 28% to HK$68.1. Reasons include optimistic about the new growth opportunities brought to the company by AI applications, the company’s high capacity utilization rate in the past few quarters to support price improvement, domestic customer demand expansion, continuous capacity expansion and technology node upgrades, etc