[Click eStock] "Hanmi Semiconductor, 2Q Earnings Surprise Expected... Target Price Up"

[Asia Economy Reporter Song Hwajeong] Shinhan Financial Investment forecasted on the 1st that Hanmi Semiconductor will record a surprise earnings performance in the second quarter of this year and raised the target stock price from 40,000 KRW to 46,000 KRW. The investment opinion was maintained as 'Buy.'

A second-quarter earnings surprise is expected. Shinhan Financial Investment estimated Hanmi Semiconductor's second-quarter sales to increase by 31.4% from the previous quarter to 93.2 billion KRW, and operating profit to rise by 47.4% to 28.5 billion KRW. Choi Doyeon, a researcher at Shinhan Financial Investment, explained, "We expect the results to significantly exceed the previous estimates of 81.2 billion KRW in sales and 23.6 billion KRW in operating profit," adding, "This is due to the sharp increase in non-memory investments amid the severe non-memory supply shortage environment." Researcher Choi also noted, "The non-memory supply shortage is expected to ease from the third quarter, but a complete resolution seems possible only in 2022," and added, "Aggressive capacity expansions by TSMC and others need to be confirmed by increased production volumes."

Hanmi Semiconductor recently succeeded in developing Micro SAW. Micro SAW is an essential piece of equipment used in the production of Vision Placement, Hanmi Semiconductor's core equipment, which had been monopolized by a Japanese company until now. Researcher Choi analyzed, "The development of Micro SAW can reduce lead times amid a surge in Vision Placement orders and is expected to improve profit margins through cost reduction effects, marking a significant achievement," and added, "Furthermore, it can generate separate Micro SAW sales to other companies in the future, which is another reason why third-quarter performance may further improve."

Shinhan Financial Investment projected Hanmi Semiconductor's annual performance this year to reach 358.3 billion KRW in sales, a 39.2% increase from the previous year, and 108.4 billion KRW in operating profit, up 62.7%. Researcher Choi stated, "This represents an all-time high performance, and results are expected to increase next year as well," adding, "Among domestic small and mid-cap semiconductor stocks, Hanmi Semiconductor is the only company whose performance and stock price are directly linked to TSMC, and it has temporarily relieved fatigue from the recent IT stock price adjustment phase caused by a sharp rise in stock price."

This content was produced with the assistance of AI translation services.