[Edaily Reporter kyoungeun kim ] Hana Micron Inc.(067310)is expected to post second-quarter results that exceed market consensus estimates for both revenue and operating profit. Analysts note that the company’s subsidiaries in Vietnam and Brazil are growing in tandem, leading to balanced performance improvements across all business segments.
On the 20th, Nam Chae-min, an analyst at Korea Investment & Securities, stated "Second-quarter revenue and operating profit are expected to reach 621.4 billion won (up 82.7% year-over-year and 22.4% quarter-over-quarter) and 90.0 billion won (up 198.1% and 25.0%, respectively), exceeding the consensus by 6.7% and 8.1%, respectively," he projected.
Analyst Nam explained, “Growth is being achieved across all business segments,” adding, “The Vietnam subsidiary is currently operating at full capacity, and growth compared to the previous quarter is expected starting in the second half of the year as the expanded production capacity is reflected.”
The firm also expects the Brazilian subsidiary to post significant quarter-over-quarter growth as memory prices continue to rise. Analyst Nam added, “Margins are also expected to remain at a high level in the mid-to-high 10% range.”
Researcher Nam projected this year’s annual revenue at 2.413 trillion won (up 57.3% year-over-year) and operating profit at 343.3 billion won (up 168.8%). These figures represent upward revisions of 9.9% and 8.8%, respectively, compared to previous estimates.
He explained, “The upward revision in estimates is driven by the robust performance of the Brazilian subsidiary and the expansion of domestic packaging volumes,” adding, “The Brazilian subsidiary has a business structure that benefits from rising memory prices, so we raised our estimates to reflect the impact of higher product prices in the second half of the year as well.” He continued, “For the standalone subsidiary, we also raised the estimates to reflect the expected expansion of outsourced Double Data Rate (DDR) 5 packaging volumes and the influx of new orders for products such as UFS (Universal Flash Storage),” adding, “Non-memory packaging will also see performance growth centered on large-chip packaging starting in the third quarter, as the increased capacity comes online.”
Analyst Nam maintained a “Buy” rating and raised the target price to 68,000 won, a 23.6% increase from the previous level. The target price was calculated by applying a target price-to-earnings ratio (Target PER) of 21 times to the 12-month forward net income and then dividing that result by the number of shares outstanding.
Analyst Nam noted, “Given that valuation pressures have eased due to the recent stock price correction, this is a good time to actively buy.”