Movement Alert|HUA HONG GRACE Rises 3.24% in Regular Trading, HSI Inclusion and Huali Micro Consolidation Expected to Underpin Recovery

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Yesterday

On September 9, HUA HONG GRACE rose 3.24% in regular trading, trading at 114.9 HKD/share, with turnover of HKD 273 million. The stock rebounded after pulling back 3.13% in the prior session, which had partially reversed gains of over 5% recorded upon the company's formal inclusion in the Hang Seng Index and completion of the Huali Microelectronics equity transfer.

On the news front, the company recently completed the transfer of 97.5% equity in Shanghai Huali Microelectronics at a transaction price of approximately RMB 8.27 billion, paid entirely through share issuance. Huali Micro is expected to be consolidated in Q3, potentially boosting group earnings. The company's H1 results showed revenue of USD 1.378 billion, up 24.5% YoY, with attributable net profit surging 409% YoY and gross margin improving to 14.8%, confirming a clear fundamental recovery. The broader semiconductor sector also strengthened, with Montage Technology up 3.91% and Iluvatar CoreX up 3.48%, providing additional sector support.

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