Shares of Hana Microelectronics (HANA) rose sharply by 10% on Wednesday after J.P. Morgan initiated coverage with an Overweight rating, citing the company’s promising shift toward AI-driven products and anticipated earnings recovery. The strong endorsement from the major brokerage has sparked renewed investor interest in HANA, positioning it as a standout performer in the ASEAN tech hardware sector.
J.P. Morgan has initiated coverage on three leading ASEAN tech hardware stocks: Hana Microelectronics (HANA), Venture Corporation (VMS), and KCE Electronics (KCE). The brokerage assigns an Overweight (OW) rating to HANA with a June 2027 price target of Bt45, while maintaining Neutral (N) ratings for VMS (PT S$18) and KCE (PT Bt30).
The analysis highlights a growing divergence between companies with artificial intelligence (AI) exposure and traditional tech players in the sector. HANA distinguishes itself from peers through its pivot to AI-related products, especially thermoelectric cooling (TEC) solutions used in optical transceivers, co-packaged optics (CPO), and high bandwidth memory (HBM) — all key to AI infrastructure. J.P. Morgan expects this differentiation to reposition HANA from a conventional ASEAN Electronics Manufacturing Services (EMS) / Outsourced Semiconductor Assembly and Test (OSAT) company to a growth story backed by AI demand.
HANA’s partnership with Phononics introduces further TEC exposure that could tap into a US$2 billion serviceable addressable market for thermal materials by 2030, as estimated by Coherent. Recovery in HANA’s core business remains solid, with signs of improvement supported by positive analog revenue growth at Texas Instruments in late 2025 and Sensata Technologies’ commercial rebound. J.P. Morgan projects HANA’s PCBA and IC segments will grow by 4%-15% and 1%-4%, respectively, in FY26/27, with earnings estimated 8%-25% above consensus.
VMS and KCE are both rated Neutral, with their valuations already reflecting ongoing recovery. The report favors VMS over KCE for its approximately 5% dividend yield, increased semiconductor involvement, and potential upside from IQOS’s FDA approval. In contrast, KCE’s focus on the automotive market faces headwinds, with electric vehicle growth slowing significantly from a 48% CAGR (2020-2025) to an estimated 11% CAGR (2025-2030).
J.P. Morgan’s preference among the three is clear: HANA > VMS > KCE.
