[Click eStock] Hanamicron Issues Perpetual Convertible Bonds "Signal of Normal Long-Term Contracts"

On the 14th, SK Securities judged that Hanamicron's decision to issue convertible bonds worth 48 billion KRW is a signal of the normal progress of the mid- to long-term contract with SK Hynix. Accordingly, it maintained a buy rating and a target price of 180,000 KRW.

Hanamicron announced the decision to issue perpetual convertible bonds worth 48 billion KRW the day before. This is expected to be used for acquiring securities of Hanamicron Vina (a dedicated full turnkey line for post-processing for SK Hynix) and supporting related businesses. Donghee Han, a researcher at SK Securities, said, "Considering the call option condition of up to 27%, it is judged that the defense of the shareholding ratio of the largest shareholder and special related parties (27.9%) is also possible," adding, "Perpetual convertible bonds are recorded as capital and are unrelated to the debt ratio."

Han said, "From the perspective of the purpose and meaning of fundraising, it is entering the area of resolving concerns about the full turnkey contract with SK Hynix," and interpreted, "The background of fundraising, including last year's $200 million facility loan from KDB Industrial Bank and Korea Eximbank, is due to the structure where up to 70% of total facility investment can be borrowed, and the remaining 30% must be covered by own funds."

He continued, "Although concerns were high due to SK Hynix's DRAM production contraction caused by the historic semiconductor industry downturn this year and the industry's record-high inventory leading to a mismatch between Hanamicron's advance investment and turnkey volume, this investment decision is judged as a signal of the normal progress of the mid- to long-term contract."

Post-processing sales for SK Hynix are expected to start at around 40 billion KRW in the first quarter and reach 230 billion KRW this year. Considering that Hanamicron's domestic existing main customers' sales, excluding sales to the Brazilian subsidiary, are estimated to be around 270 to 280 billion KRW among last year's individual sales, it is interpreted that comparable new sales will occur from this year. Han said, "The post-processing turnkey contract with SK Hynix will proceed until the end of 2029 without renewal, and sales will grow annually until 2025," adding, "Differentiated performance growth within the industry is expected during the semiconductor industry's recovery period."

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