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Hua Hong Semiconductor Ltd (1347) Fair Value & Analysis

Technology · HK · Market cap HK$337B

HH Hua Hong Semiconductor Ltd 1347 · HK
PriceHK$113.70
Fair ValueHK$109.70
Upside-3.5%
Quality40/100
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Expensive Growth
Thin margins · 2.9% net margin
Low debt · negative free cash flow
Trails peers (2/13)
Narrow moat 23/100
Evidence: Medium Range HK$82.34 – HK$137.19 Share as image

Fair value as of: Aug 20, 2026

From 10 valuation models · updated today

Fair value updated Aug 20, 2026, revised from HK$1.10 to HK$109.70 (+9,873.0%) since Aug 13, 2026. Share price −20.4% over the past month.

Below-average quality, currently priced close to our fair value.

What matters now

  • The price sits close to our fair value, market and models broadly agree here, little valuation tension.
  • Our model range runs from HK$82.34 (bear) to HK$137.19 (bull), base HK$109.70. The closer the price sits to the lower half, the larger the margin of safety.
  • Quality 40/100 (below-average quality) with medium evidence: read the verdict with care.
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Price vs Fair Value (5 years)

HK$215.20 HK$13.74 Fair Value HK$109.70 Apr 2021 Aug 2026

White line = price, green steps = our fair value per fiscal year, dashed = 300-day average. As of Aug 20, 2026.

How to read this chart

60‑month range HK$13.74 – HK$215.20 · fair‑value band HK$82.34 – HK$137.19 · the HK$113.70 price screens above the HK$109.70 fair value. Dashed = 300-day average. As of Aug 20, 2026.

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Analysis

Hua Hong Semiconductor Ltd (1347) currently trades at HK$113.70, while our model-based Fair Value estimate is HK$109.70, implying the stock looks roughly 3.5% fairly valued today. The Quality Score stands at 40/100 (below-average quality), in the Technology sector. Bear case: priced above our estimate, the market already discounts strong expectations. Bull case: above-average quality can justify a premium, the entry price still matters most (evidence: medium).

Over the trailing twelve months, Hua Hong Semiconductor Ltd generated revenue of HK$2.5B at a net margin of 2.9%. Revenue grew 22.2% year over year. It earns a return on equity of -0.8%. The balance sheet holds a net cash position of HK$1.2B. Fundamentals as of Aug 20, 2026

Our scenario range runs from HK$82.34 (bear case) to HK$137.19 (bull case); at HK$113.70, the current price sits within that range. Bear and bull are the same models run on conservative and optimistic assumptions (margins, growth, valuation multiples), so a plausible valuation range, not a price target. The share trades about 48% below its 52-week high and 245% above its 52-week low, currently above its 200-day average. For context, the median of 10 Technology peers we cover trades at -59% fair-value upside, at -4%, 1347 screens cheaper than that median.

Fair Value models

Each model estimates fair value its own way; the Fair Value above is the evidence-weighted blend. Evidence (0–100) measures how completely this model’s inputs are available: well-fed models carry more weight in the blend. The spread across models is intentional, each one stresses a different value driver; dividend models, for instance, come out structurally low when payout is small.

Model Bear Bear = the cautious scenario: the same model computed with conservative anchors (lower growth, margins and valuation multiples). Together with Bull it frames a plausible valuation range, not a price target.BaseBull Bull = the optimistic scenario: the same model computed with favourable anchors (higher growth, margins and valuation multiples). Together with Bear it frames a plausible valuation range, not a price target. Evidence
Highest evidence
Residual Income HK$206.85 HK$192.03 HK$141.40 76
Growth-Adj P/E HK$40.13 HK$56.81 HK$74.09 68
P/E Multiple HK$51.25 HK$67.92 HK$85.21 63
All 10 models by family
Earnings-Based
Graham-Dodd HK$16.67 HK$81.50 HK$112.99 54
Lynch FV HK$22.23 HK$31.49 HK$40.75 50
PEG = 1.0 HK$22.23 HK$31.49 HK$40.75 46
Multiples
P/E Multiple HK$51.25 HK$67.92 HK$85.21 63
P/S Multiple HK$30.87 HK$41.37 HK$51.87 58
P/B Multiple HK$30.87 HK$41.37 HK$51.87 55
EV/EBITDA HK$512.49 HK$648.33 HK$784.17 54
Asset-Based
NCAV (Graham) HK$150.04 HK$201.29 HK$300.08 50
Economic Profit
Residual Income HK$206.85 HK$192.03 HK$141.40 76
Growth Earnings
Growth-Adj P/E HK$40.13 HK$56.81 HK$74.09 68

Widest divergence: Asset-Based (HK$201.29) versus Earnings-Based (HK$31.49). Highest evidence: Residual Income (76).

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Key figures & financial health

Revenue (TTM) HK$2.5B
Revenue growth (YoY) +22.2%
Net margin 2.9%
Return on equity -0.8%
Free cash flow −HK$1.0B FY2025
P/E ratio 746.9 as of Jul 2, 2026
More key figures
Operating margin -3.0%
EPS (TTM) HK$0.0500
EPS growth (YoY) +500%
Net cash HK$1.2B FY2025

Figures from reported company fundamentals · as of Aug 20, 2026. TTM = trailing twelve months.

Quality Score breakdown

Overall quality 40/100

Of which business quality 46 · Market factors (momentum, volatility) 51

Profitability 13
Margins and returns on capital today
Quality Growth 75
Are margins and returns improving?
Cashflow 50
Earnings quality: real cash, not paper profit
Fin. Strength 85
Balance sheet, leverage, solvency risk
Investment 0
Disciplined investing over empire-building
Low Volatility 8
Calm price path (market factor)
Momentum 67
Price trend over the last 3–12 months (market factor)
52W Momentum 72
Distance to the 52-week high (market factor)
Net Issuance 38
Buybacks instead of dilution

Non-valuation factor families (profitability, growth, cashflow, financial strength, momentum …), each academically grounded. Valuation itself sits in the Fair Value and is deliberately excluded here to avoid double-counting.

About the company

Hua Hong Grace Semiconductor Limited, an investment holding company, engages in the manufacture and sale of semiconductor products in China, North America, Asia, and Europe.

Full company description

Hua Hong Grace Semiconductor Limited, an investment holding company, engages in the manufacture and sale of semiconductor products in China, North America, Asia, and Europe. The company offers embedded non-volatile memory; standalone non-volatile memory, including NOR flash and EEPROM; power discrete devices; analog and power management platform; and specialty logic RF processes and image sensors. It also provides design services which covers design methodologies and design flow support, standard and customized internet protocol development, ASIC design, and one-stop services; multi-project wafer services; mask marking services; and backend, testing development, mass production, product engineering, and backside processing services. In addition, the company engages in real estate development; and trading activities. Its products are used in consumer electronics, industrial control, automotive electronics, Internet of Things, and communications and computers applications. Hua Hong Grace Semiconductor Limited was formerly known as Hua Hong Semiconductor Limited and changed its name to Hua Hong Grace Semiconductor Limited in May 2026. The company was founded in 1997 and is headquartered in Shanghai, the People's Republic of China.

Company description, as reported by the company or data provider.

Revenue & earnings trend

FY2021 – FY2025 · reported fiscal years

Hua Hong Semiconductor Ltd reported revenue of HK$2.4B in FY2025 versus HK$1.6B in FY2021, a compound +10.2%/yr. Reported net income was HK$52.5M in FY2025, compounding −33.1%/yr from FY2021.

Growth Quality 52/100
The company is growing, but growth may require heavy reinvestment or weak cash conversion.
Latest Revenue (FY 2025)
HK$2.4B
Latest YoY
+19.9%
Avg. growth/yr (3Y) Measures the company's TOTAL revenue from reported annual statements: compound average growth per year (CAGR) from the fiscal year 3, 5 or N years back to the most recent comparable fiscal year. Not per share: buybacks do not change this number, and a merger can appear as a growth jump.
−1.0%
Avg. growth/yr (5Y) Measures the company's TOTAL revenue from reported annual statements: compound average growth per year (CAGR) from the fiscal year 3, 5 or N years back to the most recent comparable fiscal year. Not per share: buybacks do not change this number, and a merger can appear as a growth jump.
+20.1%
Avg. growth/yr (14Y) Measures the company's TOTAL revenue from reported annual statements: compound average growth per year (CAGR) from the fiscal year 3, 5 or N years back to the most recent comparable fiscal year. Not per share: buybacks do not change this number, and a merger can appear as a growth jump.
+10.3%
Revenue +10.2%/yr
FY21 HK$1.6B
FY22 HK$2.5B
FY23 HK$2.3B
FY24 HK$2.0B
FY25 HK$2.4B
Net income −33.1%/yr
FY21 HK$261M
FY22 HK$450M
FY23 HK$280M
FY24 HK$58.1M
FY25 HK$52.5M

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Cite: Fair Value Calculator (2026). "Hua Hong Semiconductor Ltd Fair Value". https://www.fairvalue-calculator.com/stock/1347

Peer Group

Semiconductors · 327 stocks

How this stock ranks against its industry: the green marker is this stock, the band is the typical 25–75% peer range, and the tick is the median.

Quality Score 40 · Bottom 25%
Fair Value upside −4% · Top 25%
Return on assets -1% · Below median
Net margin (TTM) 3% · Below median
Operating margin (TTM) -3% · Below median
Revenue growth 22% · Above median
Debt / equity 0.43× · Higher than 75% of peers

Valuation Multiples vs Semiconductors median · lower = cheaper

P/E (TTM) 746.9× · Pricier than 75% of peers
P/B 6.66× · Pricier than 75% of peers
P/S (TTM) 17.06× · Pricier than 75% of peers
EV/EBITDA 62.3× · Pricier than 75% of peers
PEG 1.39× · Pricier than median

Snowflake

Five quick dimensions, each 0 to 100: VALUE (fair-value potential), FUTURE (revenue growth), PAST (return on equity), HEALTH (low debt), DIVIDEND (yield). Green = this stock, grey = typical sector peer.

VALUEFUTUREPASTHEALTHDIVIDEND
This stock
VALUEFUTUREPASTHEALTHDIVIDEND
Sector peers
VALUE29 · sector 0
FUTURE100 · sector 59
PAST0 · sector 23
HEALTH78 · sector 96
DIVIDEND0 · sector 18

Values & ESG

Does this company touch areas you may want to avoid? The classification is inferred from sector and industry.

None of the checked exposures detected

ESG scores are not available for this stock yet. Values and ESG data are contextual and can differ between providers.

Similar stocks

10 more Semiconductors stocks, each showing price versus our Fair Value estimate (as of Aug 20, 2026).

Stock Price Fair Value vs Fair Value
NVIDIA Corporation NVDA $225.01 $98.98 -56%
Taiwan Semiconductor Manufacturing Company TSM $429.15 $291.42 -32%
Broadcom Inc 1AVGO €366.85 €121.25 -67%
Micron Technology, Inc 1MU €802.10 €185.67 -77%
SK hynix Inc 000660 1,504,000 KRW 1,481,291 KRW -2%
Advanced Micro Devices, Inc 1AMD €428.20 €56.33 -87%
Intel Corporation INTC C$54.50 C$16.95 -69%
MediaTek Inc 2454 3,845 TWD 1,559 TWD -59%
SK Square Co 402340 1,024,000 KRW 1,204,862 KRW +18%
Semiconductor Manufacturing International Corporation 0981 HK$73.00 HK$13.18 -82%

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Frequently asked questions

Is Hua Hong Semiconductor Ltd (1347) overvalued or undervalued?
As of Aug 20, 2026, our model estimates a fair value of HK$109.70 versus a price of HK$113.70, about −4% (fairly valued).
What is the fair value of 1347?
Our model-based fair value for Hua Hong Semiconductor Ltd is HK$109.70 (as of Aug 20, 2026), built from audited fundamentals. The current price: HK$113.70.
What is the quality score of 1347?
Hua Hong Semiconductor Ltd has a Quality Score of 40/100. It measures business quality (profitability, growth, cash flow, balance-sheet strength, investment discipline, share issuance). Market factors such as price momentum and volatility do not enter the number; they are shown separately in the detail view.
What is the revenue of Hua Hong Semiconductor Ltd (1347)?
Hua Hong Semiconductor Ltd reported trailing-twelve-month revenue of about HK$2.5B (latest available figure, as of Aug 20, 2026).
What is the net profit margin of 1347?
The net profit margin of Hua Hong Semiconductor Ltd is about 2.9%, meaning it keeps roughly 2.9% of revenue as net income. Based on the latest reported figures.

How we calculate Fair Value

Each company is valued through a stack of independent intrinsic-value models (DCF variants, residual-income, multiples and more), blended into one family-balanced consensus and weighted by how much trustworthy data backs it. A separate quality layer scores the fundamentals. Every input is real reported data, nothing guessed.

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