Hon.Precision, Inc.: Benefitting from larger test TAM across China and the US

研报英文原文证据摘录

Hon.Precision, Inc.: Benefitting from larger test TAM across China and the US

Global Research

30 July 2026ab

Hon.Precision, Inc. Equities

TaiwanBenefitting from larger test TAM across China

and the US Semiconductors

12-month rating Buy

12m price target NT$10,000.00Potential upside to 50% shipment growth target in 2027

Prior : NT$8,800

We view Hon Precision’s unchanged 50% shipment growth target in 2027 as somewhat

conservative, considering the stronger test TAM outlook guided by Advantest and Price (30 Jul 2026) NT$5,620

Teradyne earlier this week. For final test, 2027 outlook is robust, with several drivers RIC: 7769.TW BBG: 7769 TT

including Tesla/SpaceX, China AI/HPC, Google TPU, AMD’s Venice CPU and a US auto

chipmaker. Hon estimates China AI/HPC orders to potentially grow multiple times in Trading data and key metrics

2027 from 60%+ growth in 2026, and close to 30% order contribution. Overall, UBS 52-wk range NT$8,260.00-1,515.00

forecasts test equipment TAM to grow from US$13bn in 2026 to US$16bn/20bn in Market cap. NT$1,011b/US$31.1b

2027/28E, and Hon is well positioned to capture the Cloud AI investment structural Shares o/s 180m (ORD)

tailwind across China and the US. Management anticipates new tools that could support Free float 100%

a larger package to have 20-25% higher ASP, and could account for 20-30% volume in Avg. daily volume ('000) 864

H127 and >50% in H227, as OSATs and end clients migrate for future upgrade. Avg. daily value (m) NT$5,739.1

Common s/h equity (12/26E) NT$73.3b

Bright SLT outlook from China, auto and AMD’s CPU P/BV (12/26E) 13.8x

Hon Precision is optimistic about its system level test (SLT) outlook. Management Net debt to EBITDA (12/26E) NM

believes it should have 90% share in the China market, while the profit for handlers