HANA’s Stock Soars to a Record High after Reporting Healthy 3Q21 Earnings

Hana Microelectronics’ share price hit an all-time high today after the company reported a 76% increase in third-quarter net profit on the back of higher sales revenue and baht weakness.

As of 15:00 local time in Thailand, the share price of Hana Microelectronics Public Company Limited (HANA) rose THB6.75/share or 7.80% to THB93.25/share, with a trading value of 941 million baht.

For the third quarter ending 30th September 2021, HANA’s net profit increased by 76% to THB 564 million from THB 320 million in 3Q20, due to higher operating earnings in 3Q21.

HANA’s sales revenue for the period increased 23% year-on-year in USD terms to USD 190 million from USD 154 million in 3Q20. The average exchange rate for 3Q21 was 5% weaker at THB/USD 32.9 from THB/USD 31.3 in 3Q20. As a result the sales revenue in THB terms increased 30% year on year for the quarter. 

KTBST Securities (KTBST) reiterated a “BUY” rating on HANA but raise the target price to THB105.00 from THB85.00 and 2022E PER to 30x (+5 SD above its 6-yr average) from 25x (+4 SD), as it revised up 2022 net profit forecast and the company’s earnings tend to track the global growth trend. 

The analyst maintained net profit forecast atTHB2.46 billion (+29% YoY) for 2021 but upgrade the forecast by 5% to THB2.87 billion (+17%) for 2022 as it revised 2022 gross profit margin assumption up to 15.0% from 14.5% earlier in expectation of higher proportion of high-profit-margin products in the portfolio. KTBST, however, maintained a total revenue forecast at THB23.11 billion (+20% YoY)/Bt28.18bn (+22%).