JPMorgan has updated its outlook on Hana Microelectronics Public Company Limited (SET: HANA), maintaining an Overweight recommendation and lifting the target price to Bt53 from the previous Bt45. The revision follows the company’s second-quarter 2026 financial results, which delivered stronger-than-anticipated profit margins.
The firm increased its gross margin forecasts for fiscal year 2026 and 2027 to 10.6% and 12.2% respectively, attributed to enhanced operational leverage due to higher loading volumes in existing, non-AI segments. Notable growth was observed in the PCBA Assembly sector, with output rising 4% in Lamphun and 9% in Jiaxing, alongside a 23% surge in Integrated Circuit revenue at the Ayutthaya plant. Together, these three facilities contribute roughly 80% of the company’s total revenue.
In anticipation of new AI-related business lines—including phononic thermoelectric cooling and PCBAs for optical transceiver oscilloscopes, projected to begin low-volume production in the third quarter of 2026—JPMorgan has adjusted its selling, general, and administrative cost assumptions upward to factor in potential expense increases.
Despite these adjustments, JPMorgan noted that the overall expected impact on earnings for 2026–2028 remains minimal, at around 0-2%. The updated Bt53 target price is now based on a higher earnings multiple of 27 times, reflecting confidence in the accelerated recovery of Hana Microelectronics’ existing business operations.
