Hua Hong Grace (01347) saw its shares climb more than 4% during the morning trading session on Thursday, reflecting robust investor sentiment following the release of its interim financial results.

As of the time of writing, the stock was trading up 4.43% at HK$122.80, with turnover reaching HK$1.529 billion. The company reported first-half revenue of $1.378 billion, representing a year-on-year increase of 24.5%. Gross margin improved to 14.8%, up 4.7 percentage points from the prior-year period, while profit attributable to owners of the parent surged 409% to $59.568 million.

Wafer shipments climbed 17.9% year-on-year, reaching an all-time high. Notably, revenue has now grown sequentially for ten consecutive quarters as of the end of the second quarter, underscoring the company's sustained operational momentum.

Looking ahead, Hua Hong Grace guided third-quarter revenue in the range of $770 million to $780 million, implying sequential growth of 7.3% to 8.7%. The company also raised its gross margin guidance to between 16% and 18%, up from previous levels.

Analysts at Guojin Securities noted that, given the current capacity constraints in memory, MCU, and select power discrete segments, coupled with the orderly ramp-up of new capacity, the company's revenue and profitability trajectory in the second half is expected to maintain a solid upward bias.