Hua Hong Semiconductor Set to Become China’s Biggest Listing of 2023 with $2.6 Billion IPO
June 4, 2023
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Hua Hong Semiconductor ($SEHK:01347) Ltd, China’s second-largest chip foundry, has recently announced that it was granted approval by the Shanghai Stock Exchange for its planned public share sale. This is set to become the country’s biggest listing of 2023 with a value of $2.6 billion. The company is a leading provider of semiconductor manufacturing services, and its customers include well-known smartphone and automotive companies. It is a joint venture between a Chinese company, Jiangsu Changjiang Electronics Technology Co, and a US company, GlobalFoundries Inc. Hua Hong Semiconductor produces advanced integrated circuits for the Chinese market. It offers semiconductor fabrication services, including wafer fabrication, testing, packaging, and assembly services to handset and mobile device manufacturers, as well as other related industries. It has a wide range of products such as application-specific integrated circuits, embedded processors, and microcontrollers.
The company has a strong focus on research and development and has invested in advanced production and testing technology to ensure product quality. The offering is expected to raise $2.6 billion, which will be used for further expansions and research and development efforts. This will be beneficial to both the company and investors as it will enable the company to increase its production capacity and improve its product offerings. With the planned listing, investors will have access to a more diverse array of high-quality semiconductor products and services, which will benefit the entire industry.
Stock Price
The company’s stock prices have not seen a significant upswing since going public, but its strong financial performance on the back of strong demand for its products has placed it in a position to become the largest listing of the year. Despite the recent dip in stock prices, Hua Hong Semiconductor remains in a strong position to succeed in its goal. Live Quote…
About the Company
Income Snapshot
Below shows the total revenue, net income and net margin for Hua Hong Semiconductor. More…
| Total Revenues | Net Income | Net Margin |
| 2.48k | 449.91 | 18.2% |
Cash Flow Snapshot
Below shows the cash from operations, investing and financing for Hua Hong Semiconductor. More…
| Operations | Investing | Financing |
| 750.87 | -930.16 | 672.18 |
Balance Sheet Snapshot
Below shows the total assets, liabilities and book value per share for Hua Hong Semiconductor. More…
| Total Assets | Total Liabilities | Book Value Per Share |
| 7.06k | 2.92k | 2.32 |
Key Ratios Snapshot
Some of the financial key ratios for Hua Hong Semiconductor are shown below. More…
| 3Y Rev Growth | 3Y Operating Profit Growth | Operating Margin |
| 38.5% | 71.6% | 21.7% |
| FCF Margin | ROE | ROA |
| -9.9% | 11.3% | 4.8% |
Analysis
At GoodWhale, we recently conducted an analysis of HUA HONG SEMICONDUCTOR’s financials. We determined that HUA HONG SEMICONDUCTOR is a medium risk investment in terms of financial and business aspects. Our analysis also revealed 3 risk warnings in the income sheet, balance sheet, and cashflow statement. To learn more about these risks, become a registered user and check out our detailed analysis. More…
Peers
The company operates in a highly competitive industry with players such as MACOM Technology Solutions Holdings Inc, Melexis NV, RS Technologies Co Ltd. The company has a strong market position and has been able to grow its market share despite intense competition.
– MACOM Technology Solutions Holdings Inc ($NASDAQ:MTSI)
Macom Technology Solutions Holdings Inc is a provider of semiconductor and technology solutions. The company has a market cap of 4.9B as of 2022 and a Return on Equity of 25.96%. Macom Technology Solutions Holdings Inc designs, manufactures and supplies a range of semiconductor products, including integrated circuits, chipsets, packaging, and modules. The company’s products are used in a variety of applications, including data center, cloud computing, enterprise, metro, and long-haul networking.
– Melexis NV ($OTCPK:MLXSF)
Melexis NV is a semiconductor company that designs, develops, and markets integrated circuits. The company has a market cap of 3.44B as of 2022 and a return on equity of 28.95%. Melexis NV designs and manufactures products for automotive, medical, consumer, and industrial applications. The company’s products include sensors, microcontrollers, and integrated circuits.
– RS Technologies Co Ltd ($TSE:3445)
As of 2022, Huawei Technologies Co Ltd has a market cap of 115.7B and ROE of 25.27%. The company is a leading global provider of information and communications technology (ICT) infrastructure and smart devices.
Summary
Hua Hong Semiconductor, China’s second-largest chip foundry, has received approval from the Shanghai Stock Exchange for its $2.6 billion public share sale, making it the country’s largest listing of 2023. This provides an opportunity for investors to gain exposure to the semiconductor industry in China. Analysts suggest that Hua Hong’s strong earnings growth, increased demand for semiconductor products, and its good corporate governance will make it a lucrative investment for stockholders. Furthermore, the listing is expected to create liquidity in the stock market and make it easier for investors to diversify their portfolios.
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