Stock Dimension – The research department of CGS-CIMB Securities (Thailand) stated in an analysis that from the analyst meeting on November 16, HANA expects that the demand for ICs will continue. Weakness over the next 2-3 quarters as demand for restocking falters. because sales in the destination market are falling Meanwhile, customers are becoming more careful about stock management. Because demand in China has not recovered as expected. Therefore, to reduce the impact from low capacity utilization, HANA has plans to control costs, such as reducing the number of employees. and improve the production process
The packaging business for high-end EV modules is starting to have negative factors. Because customers are still trying to clear stock. Amid intense price competition in the EV market, the PCBA business remains strong. Because there is increased demand from the automotive, industrial and medical groups.
The research department of CGS Securities expects that in 4Q23, HANA will have sales decrease 13% yoy and 6% qoq to 6.19 billion baht and operating profit will decrease 8% yoy. and 24% qoq to 551 million baht
In 3Q23, PMS’s sales dropped 29% qoq to 92 million baht due to weak demand for silicon power management devices in China, with Si sales accounting for approximately 80% of the total. PMS sales in Q3 However, despite pressure on Si demand in China, HANA executives revealed that they are beginning to see signs of qoq recovery in Q4.
The Research Department therefore expects that PMS will have sales growth qoq in the 4th quarter as well from increasing production of silicon carbide (SiC) equipment after installing new machinery in the production line in the middle of the 4th quarter and looking at that new products such as MV MOSFET should help reduce the impact from weaker Si sales
HANA revealed that PMS may reach breakeven some six months later than expected, or in the second half of 2024/end of 2025, due to lower demand for Si devices. HANA has not provided any new guidance for PMS sales because it is While adjusting the estimate But the research department believes that May adjust sales target in 2024 down from 45 million USD. This compares to our estimate of $40.5 million.
Even though HANA will face negative factors in the next 3-6 months, the research department still recommends “Buy” because it believes that net profits in 2024-25 will still grow well. The target price at the end of 2024 is 68 baht with a P/E of 17.5 times in 2025. A positive factor supporting the share price is the global demand for electronic products recovering faster than expected. Downside risk will come from gross profit margins. (GPM) lower than expected and PMS increases SiC production slower than expected
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2023-11-20 07:45:51
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