Honing the edge of advanced silicon test: Beneficiary of structural AI/HPC testing growth and enabler of new technologies; initiate at Buy

研报英文原文证据摘录

Honing the edge of advanced silicon test: Beneficiary of structural AI/HPC testing growth and enabler of new technologies; initiate at Buy

Global Markets Research

Hon. Precision, Inc. 7769.TW 7769 TT 24 July 2026

EQUITY: TECHNOLOGY

RatingHoning the edge of advanced silicon test Starts at Buy

Target priceBeneficiary of structural AI/HPC testing growth and Starts at TWD 11,100.00

enabler of new technologies; initiate at Buy

Closing price TWD 6,405.00 22 July 2026Initiate coverage at Buy with TP of TWD11,100, implying ~73% upside

We initiate coverage of Hon. Precision (Hon) with a Buy rating and a target price of Implied upside +73.3%TWD11,100, based on 40x average 2027-28F EPS of TWD277. Our target P/E multiple is

at the high end of Hon’s historical trading band of 19-52x since its IPO, which we consider Market Cap (USD mn) 35,647.6

undemanding given a 58% net earnings CAGR through 2026-28F. The stock is currently ADT (USD mn) 188.9

trading at 29x 2027F EPS of TWD219, compared with semiconductor-backend equipment

and test interface vendors (2027E Bloomberg consensus average P/E 37x). Hon is an

equipment manufacturer focusing on IC test handlers and active thermal control systems Relative performance chart

(ATC) used in the final test (FT) or system level test (SLT), and AI/HPC/ASIC make up

c.80% of its tool orders. We expect Hon to capitalize on an extended testing time for

AI/HPC chips due to increased chip design complexity and larger package footprints, and

increasing testing capex by AI OSATs and semiconductor manufacturing reshoring in the

US indicate potential upside to Hon’s ATC/handlers. We estimate Hon to record a

revenue CAGR of 59% and model EPS at TWD134/TWD219/TWD336 for 2026-28F. A