Hua Hong Semiconductor reported third quarter revenue of $987.1 million, up 19.9 percent from a year earlier and 9.9 percent from the previous quarter, with net profit attributable to shareholders of $123.4 million, up 147.1 percent from a year earlier. Excluding the newly acquired Huali Microelectronics, revenue was $803.4 million, above the company’s guidance of $770 million to $780 million, and gross margin was 19.9 percent, above the forecast range of 16 to 18 percent.
The company guided fourth quarter revenue to $1.08 billion to $1.09 billion with a gross margin of 25 to 26 percent. Chairman and President Peng Bai said demand for microcontrollers, flash memory, power-management chips and power devices was increasing, with supply tight in some segments, and that higher selling prices and volumes should support growth in coming quarters. Hua Hong’s Shanghai-listed shares rose 7.1 percent to 173.5 yuan on Friday while the CSI 300 index fell 1.5 percent, on a day when the regional chip selloff that began in the United States was still running through Seoul, Taipei and Tokyo.