AI Chip Concept Stocks Watch | HUA HONG GRACE (01347.HK) plunged nearly 13%, as Goldman Sachs notes Q3 revenue guidance midpoint below expectations

newtimespace (newtimespace.com) reported, on August 14, 2026, the chip theme pulled back amid volatility, with HUA HONG GRACE (01347.HK) weakening sharply. As of 13:26, the stock was quoted at HK$128.400, down 12.77%.

On the news front, HUA HONG GRACE disclosed second-quarter sales revenue of approximately US$718 million, up 26.8% year-on-year; profit of US$38.639 million, up 385.9% year-on-year. The increase was mainly attributable to higher wafer volumes and rising average selling prices. The company expects Q3 2026 sales revenue of approximately between US$770 million and US$780 million, with gross margin of approximately between 16% and 18%.

Goldman Sachs stated that HUA HONG GRACE expects third-quarter revenue to grow 7% to 9% quarter-on-quarter, with gross margin ranging between 16% and 18%, compared with 16.5% in the second quarter—indicating that gross margin is still improving even as capacity continues to expand. However, the midpoint of the revenue guidance is 11% and 6% below the bank's and market expectations respectively, a weaker-than-expected performance.

HUA HONG GRACE(01347.HK)Specializes in specialty process wafer foundry, offering customized manufacturing of power discretes, embedded non-volatile memory, analog and power management ICs. Its 8-inch and 12-inch production lines serve automotive, industrial control and data center power management applications. The company holds multiple automotive-grade quality certifications and provides mass production foundry services to various domestic and international automotive clients. Its overall capacity utilization has remained high over an extended period.

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