[Edaily Reporter Kim Hyung-il ] SKSecurities forecasts that Hana Materials Inc.(166090)will continue to see improved earnings due to rising demand for silicon (Si) parts driven by memory semiconductor miniaturization and expanded production capacity. In particular, the firm expects earnings growth to accelerate through 2028 as the ramp-up of new fabs begins in earnest in the second half of 2027.

On the 3rd, Lee Dong-ju, an analyst at SKSecurities, stated, “Hana Materials Inc. is a leading Si parts manufacturer in the front-end market, producing consumable parts for Si-based etching equipment,” and added, “The increase in demand for Si parts is structural, as the number of steps in the oxide etching process rises due to DRAM scaling and the shift toward higher-layer NAND.”

Hana Materials Inc.’s revenue has moved in tandem with fluctuations in global memory wafer production capacity. Recently, earnings have shown a gradual recovery in line with rising utilization rates in the Chonbang memory sector, and the analyst projected that revenue growth will continue through the third and fourth quarters.

In particular, since the ramp-up of major DRAM expansion fabs such as P4 and M15X is expected to begin in earnest in the second half of 2027, the analyst projected that the earnings trajectory will show a steep upward slope from the second half of next year through 2028. The expansion and ramp-up of P4 and M15X are currently being cited within the semiconductor industry as key schedules for expanding memory production capacity.

The firm also assessed that momentum in the NAND market remains strong. The analyst projected that related demand would increase in line with the expansion of production capacity at the Miyagi Center in Japan by Tokyo Electron (TEL), a major client. Furthermore, the analyst anticipated that market penetration in the cryo etching equipment market would be possible by 2027 and predicted a gradual expansion of market share in the high aspect ratio (HAR) hole etching segment.

The analyst projected Hana Materials’ revenue for next year at 446.3 billion won, a 20% increase from the previous year. Operating profit for the same period is expected to rise by 40% to 138.3 billion won.

Regarding the recent stock price correction, the analyst assessed that it reflected some uncertainty. The analyst noted that strike issues arose following the establishment of a labor union last May, and the market’s reaction to the company’s entry into the 70.2 billion won silicon anode material business was not favorable. The analyst stated, “The positive impact on the core business fundamentals driven by the booming semiconductor market far outweighs these temporary headwinds,” adding, “Even within the industry, Hana Materials’ stock price is significantly undervalued compared to major peers.”