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Estimated Discount To Fair Value: 47.9%

Hua Hong Semiconductor is trading at HK$27.2, significantly below its estimated fair value of HK$52.24, suggesting it may be undervalued based on cash flows. Despite a decline in profit margins from 16.4% to 6.2%, earnings are projected to grow 27.3% annually, outpacing the Hong Kong market's average growth rate of 11.3%. Recent leadership changes with Mr. Peng Bai as president could influence strategic direction and operational efficiency moving forward.

• Our expertly prepared growth report on Hua Hong Semiconductor implies its future financial outlook may be stronger than recent results.

• Take a closer look at Hua Hong Semiconductor's balance sheet health here in our report.

Semiconductor Manufacturing International

Overview: Semiconductor Manufacturing International Corporation is an investment holding company involved in the manufacture, testing, and sale of integrated circuits across the United States, China, and Eurasia with a market cap of approximately HK$483.49 billion.

Operations: The company generates revenue of $7.50 billion from its integrated circuits manufacturing and sales operations across the United States, China, and Eurasia.

Estimated Discount To Fair Value: 49.4%

Semiconductor Manufacturing International is trading at HK$47.9, well below its estimated fair value of HK$94.73, highlighting potential undervaluation based on cash flows. Earnings are projected to grow significantly at 23.1% annually, surpassing the Hong Kong market's rate of 11.3%. However, profit margins have decreased from 17.8% to 7.5%, and recent impairment charges may affect financial stability despite anticipated revenue growth of around $8 billion for the year-end, exceeding industry averages.

• Our earnings growth report unveils the potential for significant increases in Semiconductor Manufacturing International's future results.

• Click here to discover the nuances of Semiconductor Manufacturing International with our detailed financial health report.

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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.

Companies discussed in this article include KOSDAQ:A196170 SEHK:1347 and SEHK:981.

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