HANA Jumps over 8%, Analyst Gives a TP of ฿72 on Massive Order Demand

The share price of Hana Microelectronics Public Company Limited (HANA) was traded at ฿69.00/share in the morning session on Wednesday, June 9, up ฿5.25/share or 8.24%, with a trading value of 1,731 million baht.

Capital Nomura Securities (CNS) expected HANA to report a net profit of 689 million baht in 2Q21, an increase of 129% QoQ, as demand from customers such as automobile, telecom and industrial has pick up significantly, prompting the plants in Ayutthaya, Lamphun and the US to operate at full capacity. The weakening of the Thai baht benefited the company’s margins as well. 

Regarding the chip shortage, customers can continue to place orders normally, although raw materials such as semiconductors may require a lengthier delivery time. This could result in HANA’s semi-production line operating below full capacity in 3Q21.

CNS maintained its 2021 earnings forecast of 2.32 billion baht, a 22% increase, thanks to the acceleration of factory renovations in China in response to the “Made in 2025” trend, which aims to minimize the reliance on the US.

a new high-margin product called Power management Semiconductor, or SiC. In general, utilized in items that consume a lot of electricity, such as electric vehicles. Thus, CNS has given a target price for HANA at 72.00 baht per share.