Hana Microelectronics Public Company Limited (SET: HANA) reported a challenging start to 2026, with first-quarter net profits diving 77% compared to the previous year. Despite maintaining stable sales in U.S. dollar terms, the electronics manufacturing giant was squeezed by a strengthening Thai Baht, higher research and development (R&D) spending, and significant one-off exceptional charges.
In USD terms, HANA’s revenue grew 1% year-on-year to USD 156 million. However, the Thai Baht appreciated by 7%, averaging THB 31.6 against the dollar compared to THB 34.0 in 1Q25. This currency shift resulted in a 6% decline in THB-reported revenue, which fell to THB 4,932 million.
Performance across divisions was mixed: while the IC division in Jiaxing saw a massive 113% revenue jump, the group’s largest segment, PCBA Lamphun, suffered a 19% contraction.
The group’s net profit plummeted to THB 103 million, down from THB 478 million in 1Q25. This sharp decline was driven by several factors:
- Normalized Profit Margin: Fell from 8.7% to 2.1%.
- Other Income: The previous year’s performance was bolstered by THB 260 million higher “Other Income,” creating a high base for comparison.
- Exceptional Charges: HANA booked a THB 114.5 million loss related to a customer’s business, split between a THB 60.5 million inventory write-down and THB 54 million in doubtful debt provisions.
Operating expenses also saw an uptick, with SG&A expenses rising 3%, primarily attributed to increased investment in R&D. Gross profit margins tightened to 9.3% from 10.1%, largely due to a less favorable product mix at its U.S.-based HTI operation.
Despite the profit slump, HANA maintains a robust financial cushion with THB 11.6 billion in cash reserves. Moving forward, the company remains sensitive to currency volatility, noting that every 10% shift in the Baht/USD rate impacts quarterly operating profit by approximately THB 200 million.
