[Goldman Sachs lowers the target price of Huahong Grace H shares from HK$335 to HK$289] On October 22, Goldman Sachs issued a report stating that it lowered the target price of Huahong Grace by 13.7%, from HK$335 to HK$289, maintaining a "buy" rating. The bank said that in order to reflect the integration of its Huali Microelectronics, the net profit for the fiscal year 2026 to 2027 will be reduced by 5% and 2%, and will be increased by 3% in 2028. The bank expects that investment and customer strategies in the field of generative AI will drive strong market demand for embedded and independent non-volatile memory and power management integrated circuits. Although increased depreciation and initial integration costs will put pressure on short-term profitability, the continuous expansion of 12-inch manufacturing capabilities is expected to bring scale effects and increase operating leverage in the long term.