KGI Securities (KGI) has reiterated its ‘Neutral’ stance on Hana Microelectronics Public Company Limited (SET: HANA) in its analysis, forecasting a subdued earnings performance in the second quarter of 2025, weighed down by baht appreciation and lingering U.S. tariffs.
According to KGI Taiwan’s latest tech hardware sector analysis, demand in the AI server sector may lose steam in the second half of the year due to pulled-in orders in 1H25 and potential fallout from U.S. trade actions. The risk of fresh tariffs on consumer PCs and smartphones underpins an uncertain outlook for the remainder of 2025 and into 2026.
For the April-June period, HANA’s core profit is expected to slump 65% year-on-year and 22% quarter-on-quarter to 172 million baht, primarily due to squeezed margins from a strengthening baht. Sales for the same period are forecast at $156 million, down 15% from a year earlier, nudging first-half revenues to $311 million—representing just 44% of KGI’s full-year projections.
Gross margins are expected to contract to 8.9% for the quarter, compared to 12.4% a year earlier, reflecting adverse currency moves (with the baht averaging 33.1 to the dollar versus 36.7 last year and 33.9 last quarter).
Looking into the second half, KGI predicts some earnings improvement driven by HANA’s ongoing shift of Si manufacturing operations to China, a move expected to mitigate some operating losses.
While the transition should aid the Powermaster segment, the upside outlook for the company’s core PCBA and OSAT businesses is anticipated to face limitations. As first-half core profit is projected to comprise just 35% of the KGI’s full-year estimate, it limits hopes for a strong second-half rebound.
KGI Securities maintains a ‘Neutral’ rating on HANA with an end-2025 target price of 19.00 baht per share, noting that recent advances in U.S. trade negotiations could lift market sentiment and provide trading opportunities.
As of 10:48 AM (Bangkok time) on Thursday, the share price of Hana Microelectronics Public Company Limited surged by 5.21% or THB 1.10 to THB 22.20, with a trading value of THB 213.93 million.
