"Hanmi Semiconductor Expected to See Strong Profit Growth... Target Price Raised"[Click e-Stock]

Global investment bank Merrill Lynch announced on the 22nd that it has raised its target price for Hanmi Semiconductor to 500,000 won, stating that the company's weak first-quarter sales this year are manageable.

In a report released on this day, Merrill Lynch said, "The target price was calculated by applying a price-to-earnings ratio (PER) of 47 times the expected earnings per share (EPS) for 2028. This is a conservative figure, about 30% lower than the average for 2024–2025," and explained, "The reason for using the 2028 EPS as the benchmark is that newly constructed fabs in Korea (SK hynix's Yongin fab and Samsung Electronics' P5) are expected to begin full operations, which will have a significant impact on performance."

Hanmi Semiconductor's first-quarter results fell far short of expectations. The main reason is believed to be a decrease in TCB (Thermal Compression Bonder) orders from SK hynix. However, a recovery in the second quarter and in the second half of the year is considered fully achievable. This is because the application of TCB is diversifying beyond high bandwidth memory (HBM) to include 2.5D logic and HBF (High Bandwidth Flat), and the customer base is also becoming more diverse.

Merrill Lynch stated, "We expect strong profit growth based on high margins to continue from the second half of this year through 2027–2028, which justifies the high PER multiple demonstrated over the past two years."

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