Hua Hong Grace Semiconductor Limited Just Recorded A 12% EPS Beat: Here's What Analysts Are Forecasting Next
A week ago, Hua Hong Grace Semiconductor Limited (HKG:1347) came out with a strong set of quarterly numbers that could potentially lead to a re-rate of the stock. It was overall a positive result, with revenues beating expectations by 2.9% to hit US$718m. Hua Hong Grace Semiconductor reported statutory earnings per share (EPS) US$0.022, which was a notable 12% above what the analysts had forecast. This is an important time for investors, as they can track a company's performance in its report, look at what experts are forecasting for next year, and see if there has been any change to expectations for the business. With this in mind, we've gathered the latest statutory forecasts to see what the analysts are expecting for next year.
After the latest results, the 18 analysts covering Hua Hong Grace Semiconductor are now predicting revenues of US$3.09b in 2026. If met, this would reflect a decent 16% improvement in revenue compared to the last 12 months. Per-share earnings are expected to bounce 90% to US$0.11. Yet prior to the latest earnings, the analysts had been anticipated revenues of US$3.09b and earnings per share (EPS) of US$0.11 in 2026. So the consensus seems to have become somewhat more optimistic on Hua Hong Grace Semiconductor's earnings potential following these results.
View our latest analysis for Hua Hong Grace Semiconductor
The analysts have been lifting their price targets on the back of the earnings upgrade, with the consensus price target rising 9.0% to HK$142. It could also be instructive to look at the range of analyst estimates, to evaluate how different the outlier opinions are from the mean. There are some variant perceptions on Hua Hong Grace Semiconductor, with the most bullish analyst valuing it at HK$335 and the most bearish at HK$41.00 per share. As you can see the range of estimates is wide, with the lowest valuation coming in at less than half the most bullish estimate, suggesting there are some strongly diverging views on how analysts think this business will perform. With this in mind, we wouldn't rely too heavily the consensus price target, as it is just an average and analysts clearly have some deeply divergent views on the business.
Of course, another way to look at these forecasts is to place them into context against the industry itself. The analysts are definitely expecting Hua Hong Grace Semiconductor's growth to accelerate, with the forecast 34% annualised growth to the end of 2026 ranking favourably alongside historical growth of 6.6% per annum over the past five years. Compare this with other companies in the same industry, which are forecast to grow their revenue 16% annually. It seems obvious that, while the growth outlook is brighter than the recent past, the analysts also expect Hua Hong Grace Semiconductor to grow faster than the wider industry.
The Bottom Line
The biggest takeaway for us is the consensus earnings per share upgrade, which suggests a clear improvement in sentiment around Hua Hong Grace Semiconductor's earnings potential next year. Happily, there were no major changes to revenue forecasts, with the business still expected to grow faster than the wider industry. There was also a nice increase in the price target, with the analysts clearly feeling that the intrinsic value of the business is improving.
Following on from that line of thought, we think that the long-term prospects of the business are much more relevant than next year's earnings. We have forecasts for Hua Hong Grace Semiconductor going out to 2028, and you can see them free on our platform here.
You should always think about risks though. Case in point, we've spotted 1 warning sign for Hua Hong Grace Semiconductor you should be aware of.
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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.