Hua Hong Grace Semiconductor Valuation

Q: What is the Fair Price of 1347 when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

1347 (HK$145.3) is trading above our estimate of [[future cash flow value]] (HK$43.8)

Is 1347 undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

1/6

Valuation Score 1/6

Below Future Cash Flow Value
Significantly Below Future Cash Flow Value
Price-To-Sales vs Peers
Price-To-Sales vs Industry
Price-To-Sales vs Fair Ratio
Analyst Forecast

Share Price vs Future Cash Flow Value

What is the Fair Price of 1347 when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

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Below Future Cash Flow Value: 1347 (HK$145.3) is trading above our estimate of future cash flow value (HK$43.8)

Significantly Below Future Cash Flow Value: 1347 is trading above our estimate of future cash flow value.

Key Valuation Metric

Which metric is best to use when looking at relative valuation for 1347?

Key metric: As 1347 is barely profitable we use its Price-To-Sales Ratio for relative valuation analysis.

The above table shows the Price to Sales ratio for 1347. This is calculated by dividing 1347's market cap by their current revenue.
What is 1347's PS Ratio?
PS Ratio	12.8x
Sales	US$2.52b
Market Cap	US$38.33b

1347 key valuation metrics and ratios. From Price to Earnings, Price to Sales and Price to Book to Price to Earnings Growth Ratio, Enterprise Value and EBITDA.
Key Statistics
Enterprise Value/Revenue	16.1x
Enterprise Value/EBITDA	61.9x
PEG Ratio	15.4x

Price to Sales Ratio vs Peers

How does 1347's PS Ratio compare to its peers?

The above table shows the PS ratio for 1347 vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
Company	Forward PS	Estimated Growth	Market Cap
Peer Average	21.8x
981 Semiconductor Manufacturing International	8.1x	12.99%	HK$749.6b
1385 Shanghai Fudan Microelectronics Group	5x	17.50%	HK$42.9b
2577 InnoScience (Suzhou) Technology Holding	46.5x	31.45%	HK$65.3b
3625 Shanghai FourSemi Semiconductor	27.8x	n/a	HK$11.8b
1347 Hua Hong Grace Semiconductor	12.8x	14.57%	HK$300.3b

Price-To-Sales vs Peers: 1347 is good value based on its Price-To-Sales Ratio (12.8x) compared to the peer average (21.8x).

Historical Price to Sales Ratio

Historical Price to Sales Ratio compares a stock's price to its sales over time. Higher ratios indicate that investors are willing to pay more for the stock.

Fetching historical data

Price to Sales Ratio vs Industry

How does 1347's PS Ratio compare vs other companies in the HK Semiconductor Industry?

15 Companies	Price / Sales	Estimated Growth	Market Cap
6865 Flat Glass Group	1x	10.88%	US$3.54b
3800 GCL Technology Holdings	1.5x	14.48%	US$3.09b
968 Xinyi Solar Holdings	1x	3.21%	US$2.95b
85 China Electronics Huada Technology	1.1x	n/a	US$308.30m

15 Companies		Estimated Growth	Market Cap

No more companies

Price-To-Sales vs Industry: 1347 is expensive based on its Price-To-Sales Ratio (12.8x) compared to the Hong Kong Semiconductor industry average (4.2x).

Price to Sales Ratio vs Fair Ratio

What is 1347's PS Ratio compared to its Fair PS Ratio? This is the expected PS Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

1347 PS Ratio vs Fair Ratio.
Fair Ratio
Current PS Ratio	12.8x
Fair PS Ratio	6.2x

Price-To-Sales vs Fair Ratio: 1347 is expensive based on its Price-To-Sales Ratio (12.8x) compared to the estimated Fair Price-To-Sales Ratio (6.2x).

Analyst Price Targets

What is the analyst 12-month forecast and do we have any statistical confidence in the consensus price target?

The above table shows the analyst 1347 forecast and predictions for the stock price in 12 month’s time.
Date	Share Price	Average 1Y Price Target	Dispersion	High	Low	1Y Actual price	Analysts
Current	HK$145.30	HK$111.46 -23.29%	36.31%	HK$186.66	HK$38.01	n/a	18
May ’27	HK$114.10	HK$93.91 -17.70%	28.86%	HK$134.29	HK$33.99	n/a	17
Apr ’27	HK$83.65	HK$93.68 +11.99%	28.71%	HK$134.41	HK$34.02	n/a	17
Mar ’27	HK$96.75	HK$89.59 -7.40%	31.89%	HK$133.97	HK$33.99	n/a	18
Feb ’27	HK$116.50	HK$76.96 -33.94%	37.67%	HK$133.98	HK$28.97	n/a	19
Jan ’27	HK$74.30	HK$75.92 +2.18%	36.03%	HK$119.13	HK$28.92	n/a	19
Dec ’26	HK$74.90	HK$73.83 -1.43%	36.52%	HK$119.15	HK$28.93	n/a	19
Nov ’26	HK$79.75	HK$53.96 -32.34%	45.58%	HK$118.84	HK$22.30	n/a	19
Oct ’26	HK$80.00	HK$46.15 -42.31%	30.85%	HK$87.00	HK$22.33	n/a	20
Sep ’26	HK$52.10	HK$44.56 -14.47%	24.53%	HK$68.25	HK$22.38	n/a	20
Aug ’26	HK$39.45	HK$34.94 -11.44%	18.58%	HK$44.93	HK$20.17	n/a	20
Jul ’26	HK$34.70	HK$34.10 -1.72%	22.34%	HK$44.94	HK$17.01	n/a	20
Jun ’26	HK$31.60	HK$34.97 +10.65%	19.10%	HK$44.88	HK$20.15	HK$152.30	19
May ’26	HK$35.45	HK$31.95 -9.86%	23.29%	HK$44.51	HK$16.34	HK$114.10	16
Apr ’26	HK$30.45	HK$30.48 +0.10%	25.20%	HK$43.99	HK$16.38	HK$83.65	15
Mar ’26	HK$34.30	HK$27.50 -19.81%	23.66%	HK$43.00	HK$16.36	HK$96.75	17
Feb ’26	HK$22.85	HK$24.59 +7.63%	22.24%	HK$31.97	HK$16.41	HK$116.50	16
Jan ’26	HK$21.65	HK$24.57 +13.50%	22.24%	HK$31.94	HK$16.40	HK$74.30	16
Dec ’25	HK$20.55	HK$24.74 +20.41%	21.56%	HK$31.99	HK$16.42	HK$74.90	17
Nov ’25	HK$20.85	HK$21.96 +5.33%	23.61%	HK$31.32	HK$11.97	HK$79.75	16
Oct ’25	HK$20.90	HK$21.37 +2.25%	20.83%	HK$29.95	HK$11.99	HK$80.00	16
Sep ’25	HK$17.00	HK$21.58 +26.93%	21.31%	HK$29.96	HK$11.99	HK$52.10	16
Aug ’25	HK$20.55	HK$20.71 +0.76%	23.40%	HK$30.01	HK$11.99	HK$39.45	15
Jul ’25	HK$22.05	HK$20.71 -6.10%	23.42%	HK$30.02	HK$11.99	HK$34.70	15
Jun ’25	HK$19.40	HK$18.89 -2.63%	17.42%	HK$24.00	HK$12.00	HK$31.60	15

AnalystPriceTarget

Community Contributor

HK$111.46

Fair Value

30.4% overvalued

Number of Analysts

Analyst Forecast: Target price is lower than the current share price.

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Company Analysis and Financial Data Status

Data	Last Updated (UTC time)
Company Analysis	2026/06/06 21:15
End of Day Share Price	2026/06/05 00:00
Earnings	2026/03/31
Annual Earnings	2025/12/31

Data Sources

The data used in our company analysis is from S&P Global Market Intelligence LLC. The following data is used in our analysis model to generate this report. Data is normalised which can introduce a delay from the source being available.

Package	Data	Timeframe	Example US Source ^*
Company Financials	10 years	Income statement Cash flow statement Balance sheet	SEC Form 10-K SEC Form 10-Q
Analyst Consensus Estimates	+3 years	Forecast financials Analyst price targets	Analyst Research Reports Blue Matrix
Market Prices	30 years	Stock prices Dividends, Splits and Actions	ICE Market Data SEC Form S-1
Ownership	10 years	Top shareholders Insider trading	SEC Form 4 SEC Form 13D
Management	10 years	Leadership team Board of directors	SEC Form 10-K SEC Form DEF 14A
Key Developments	10 years	Company announcements	SEC Form 8-K

^* Example for US securities, for non-US equivalent regulatory forms and sources are used.

Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more.

Analysis Model and Snowflake

Details of the analysis model used to generate this report is available on our Github page, we also have guides on how to use our reports and tutorials on Youtube.

Learn about the world class team who designed and built the Simply Wall St analysis model.

Industry and Sector Metrics

Our industry and section metrics are calculated every 6 hours by Simply Wall St, details of our process are available on Github.

Analyst Sources

Hua Hong Grace Semiconductor Limited is covered by 46 analysts. 22 of those analysts submitted the estimates of revenue or earnings used as inputs to our report. Analysts submissions are updated throughout the day.

Analyst	Institution
Qingyuan Lin	Bernstein
Alex Chan	BNP Paribas
Dai Shen	BofA Global Research