Solid demand and execution toward expansion Quick Note

研报英文原文证据摘录

Solid demand and execution toward expansion Quick Note

Global Markets Research

Hon. Precision, Inc. 7769.TW 7769 TT 30 July 2026

EQUITY: TECHNOLOGY

RatingSolid demand and execution toward expansion Remains Buy

Target price TWD 11,100.00 RemainsQuick Note

Closing price TWD 5,620.00 30 July 2026Maintain Buy and TP of TWD11,100

Hon reported 2Q26 results and hosted an analyst meeting on 30 July. GM at 56.1% was

broadly in line with our and Bloomberg consensus estimates (Fig.1), while OPM was

lower at 48.5% due to one-off expense from the transfer of treasury shares to employees. Research Analysts

We view our 2026-28F operating assumptions intact and thus maintain 2026-28F EPS Semiconductor

estimates and our target price of TWD11,100, based on 40x average 2027-28F EPS of Eric Chen, CFA - NITB

TWD277. The stock is currently trading at 26x 2027F EPS of TWD219, which we believe eric.chen@nomura.com

is attractive after a 32% correction from the peak in late May (vs. TAIEX down 11%) and +886(2) 21769965

the overall AI/HPC semi testing structural growth story remains intact (see our Anchor Aaron Jeng, CFA - NITB

Report). Maintain Buy. aaron.jeng@nomura.com

+886(2) 21769962

Solid handler demand backed by AI/HPC

Vivian Yang - NITBHon recorded 77% of orders from AI/HPC/ASIC in 1H26. Within final test (FT) handlers,

vivian.yang@nomura.comthe company expects tool delivery to a US EV AI chipmaker and a US CSP’s new TPU to

+886(2) 21769970

fuel 2H26 business. In system-level test (SLT) handlers, Hon is developing tools for a US

CSP’s next-generation TPU slated for production in 2H27-2028 which might bring the

thermal requirement to ~10kW, with CPU+TPU under test simultaneously. Also,

management noted it is still working on the engineering of an SLT handler for a US GPU