Hana Microelectronics: Cycle has corrected, initiate Buy

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Hana Microelectronics: Cycle has corrected, initiate Buy

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Hana Microelectronics

Cycle has corrected, initiate Buy

Initiating Coverage: BUY | PO: 42.00 THB | Price: 29.50 THB

Initiate with a Buy rating and Bt42 price objective 21 May 2026

We initiate coverage on HANA with a Buy rating and a PO of Bt42, based on 31.6x (+1SD Equity

of historical band) 2027E P/E, which we view as a more normalized earnings year of the

cycle. Our positive view is driven by (1) recovery in the IC cycle, (2) narrowing PMS Suppapong Iemkongaek, CFA, CMT ^^^ Research Analyst

losses as restructuring progresses, and (3) a stable earnings base from PCBA. We do not Kiatnakin Phatra Securities

include any upside from AI-related exposure at this stage. +66suppapong.iemk@kkpfg.com2 305 9925

Pressure from IC downturn is over

HANA’s earnings have been under pressure from the analog semiconductor downturn,

Stock Datawith IC utilization dropping to around 40% in 3Q25. However, leading indicators are

improving, with inventory levels normalizing and Thailand IC exports picking up since late Price 29.50 THB

2025. We believe 2025 marked the bottom, with recovery starting in 2026 and Price Objective 42.00 THB

becoming clearer in 2027 as utilization improves. Given the operating leverage in the IC Date Established 21-May-2026

business, this should translate into a meaningful earnings rebound. Investment Opinion C-1-8

2027 is when it all comes together 52-WeekMrkt Val /RangeShares Out (mn) 15.10800THB-36.50USD / 885.4THB

PMS has been a key drag since mid-2024, but losses should start to narrow from 2H26 Market Value (mn) 26,118 THB

as restructuring takes effect and product qualification progresses. We expect the Average Daily Value (mn) 33.29 USD

business to move closer to breakeven in 2027.