[Click eStock] "Hana Micron Expected to Show Clear Performance Improvement in Q3... Target Price Raised"

Target Price Raised from 16,000 Won to 28,000 Won

On September 26, Shinhan Investment & Securities raised its target price for Hana Micron from 16,000 won to 28,000 won, citing a clear improvement in performance centered on overseas subsidiaries in the third quarter of this year. The investment opinion was maintained as 'Buy'.

Namgoong Hyun, a researcher at Shinhan Investment & Securities, stated, "We have raised the target price by applying a target price-to-book ratio (PBR) of 4 times to the projected book value per share (BPS) of 6,982 won for 2026," adding, "This is a fair valuation, equivalent to 9.5 times the 2026 operating profit."

Performance is expected to improve in the third quarter of this year, mainly driven by overseas subsidiaries. Namgoong Hyun explained, "For the third quarter, Hana Micron's sales are projected to increase by 16.6% quarter-on-quarter to 396.6 billion won, and operating profit is expected to rise by 32.5% to 40 billion won, surpassing the consensus estimate of 37.5 billion won." He further analyzed, "The VINA subsidiary is expected to benefit from robust memory demand and increased turnkey outsourcing volume, resulting in a leverage effect, while the Brazilian subsidiary's profitability will improve as tax benefits become fully realized."

This year's and next year's performance are expected to fall short of high expectations. Namgoong Hyun forecasted, "This year's sales will increase by 18.5% year-on-year to 1.5 trillion won, and operating profit will rise by 23.1% to 131.5 billion won, which is below the consensus estimate of 137.2 billion won." He added, "In 2026, sales are projected to grow by 27% to 1.9 trillion won, and operating profit is expected to increase by 49.1% to 196 billion won, both falling short of the consensus estimate of 217.3 billion won."

There is a need to pay attention to the performance growth of the VINA subsidiary. Namgoong Hyun emphasized, "The performance growth of the VINA subsidiary is noteworthy," and added, "Especially with the completion of the second VINA plant in 2026, the leverage effect will be fully realized, and the operating profit growth rate for VINA in 2026 is expected to reach 189%."

Expectations for memory semiconductors are rising, making further share price increases possible. Namgoong Hyun explained, "Following the expansion of the artificial intelligence (AI) training market, the increase in demand from general data centers in the inference market has further heightened expectations for memory semiconductors." He continued, "As a back-end process manufacturer, Hana Micron is expected to benefit from the trickle-down effect of increased outsourcing volume. Although the share price has been trending upward recently, there remains further upside potential when considering performance growth and valuation."

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