Hanmi Semiconductor exceeded market expectations in its first-quarter performance, driven by a Micron-led order backlog and the resumption of demand from SK Hynix. CLSA analyst Harry Kim noted that the company's revenue and operating profit surpassed market consensus by 8% and 13%, respectively, marking a strong rebound after two consecutive quarters of underperformance. The analyst attributed the results to the competitive strength of the company's TC bonder equipment and the expansion of its MSVP business, which together established a foundation for structural growth. Micron accounted for 46% of total revenue based on a solid order backlog, while SK Hynix resumed orders for TC bonders related to HBM4 production.
Hanmi Semiconductor Reports Q1 Revenue and Operating Profit Above Consensus
Hanmi Semiconductor recorded a gross margin of 62% and an operating margin of 52% in the first quarter. Harry Kim stated that strong revenue growth and an increased proportion of high-margin products supported the robust profitability. Micron, leveraging its DRAM technology leadership, drove demand through proactive equipment investments, contributing 46% of total revenue. SK Hynix resumed TC bonder orders related to HBM4 production during the quarter.
CLSA Highlights TC Bonder and MSVP as Core Competitive Strengths
CLSA identified the TC bonder business as Hanmi Semiconductor's core competitive advantage. Harry Kim stated that the TC bonder remains the central pillar of the company's growth, supported by superior precision, productivity, and a proven track record. The analyst noted that Micron's proactive equipment investments, driven by its DRAM technology leadership, continue to fuel demand for TC bonders.
The MSVP business is emerging as a new growth pillar, according to the analyst. Kim stated that large substrate processing orders are increasing due to industry-wide production capacity expansion and the customer base Hanmi Semiconductor has secured in the substrate sector, positioning MSVP as a core growth axis.
Analyst Projects H2 Growth from TSMC Supply Chain Entry and Terafab Orders
CLSA projected that Hanmi Semiconductor will enter TSMC's supply chain with logic TC bonders and flip-chip bonders as TSMC expands CoWoS production capacity. The analyst noted that additional orders for memory TC bonders and MSVP equipment from Terafab remain possible, indicating sufficient growth potential. Harry Kim stated that demand from domestic substrate companies for MSVP equipment is expected to materialize in the second half of the year, adding that this strong catalyst pipeline will continue to drive stock momentum.
CLSA Maintains 325,000 Won Target Price and Buy Rating
CLSA maintained a target price of 325,000 won and a 'buy' rating for Hanmi Semiconductor stocks. The target price applies a price-to-earnings ratio of 50 times to the projected earnings per share for 2027 and 2028. Harry Kim stated that despite increased volatility in the domestic stock market, downside risks to the performance of companies in the semiconductor supply chain, including Hanmi Semiconductor, are not significant. The analyst projected that the company's dominant position in the TC bonder market, supported by upcoming catalysts, will underpin its valuation.
FAQ
What were Hanmi Semiconductor's Q1 revenue and operating profit margins?
Hanmi Semiconductor recorded a gross margin of 62% and an operating margin of 52% in the first quarter. The company's revenue and operating profit exceeded market consensus by 8% and 13%, respectively.
What is CLSA's target price for Hanmi Semiconductor stocks?
CLSA maintained a target price of 325,000 won for Hanmi Semiconductor stocks, applying a price-to-earnings ratio of 50 times to projected earnings per share for 2027 and 2028. The firm also maintained a 'buy' rating.
