Company Coverage
HANA (Thailand) (HANA TB): AI-related Projects Remain On Track, With Mass Production In 3Q26
BUY (Maintained)
Current price:
Target price:
Upside:
Previous TP :
Bt46.25
Bt54.00
+16.8%
Bt38.00
Analyst
Analyst
Sirithat Prasertwuti
Highlights
Two AI-related projects remain on track, with mass production expected in 3Q26 for both projects.
2027 capex plans are expected to increase significantly, providing a positive trajectory for HANA in 2027-28.
Earnings in 2H26-2028 should be supported by a continued improvement in the PMS business, AI-related projects, and a favourable semiconductor industry outlook.
We maintain BUY with a higher target price of Bt54.00, as we roll forward our valuation to 2027.
Analysis
Two AI-related projects remain on track, with mass production expected to commence in 3Q26. 2027 capex plans are currently under review, but management expects capex to increase significantly. This reinforces our confidence in HANA (Thailand)’s (HANA) continued positive trajectory within the semiconductor and value chain. While the overall upcycle earnings trend remains largely unchanged, management’s comments reaffirmed our strong 2H26-2028 earnings outlook, particularly for Power Master Semiconductor Co., Ltd. (PMS) sales and development to reduce its losses.
With PMS demand improving qoq in 2Q26, 2H26 losses trend is still positive. We expect 2H26 earnings to account for 60% of our full-year 2026 forecast. Despite the strong 2Q26 earnings, partly driven by a slightly faster than-expected narrowing of losses at PMS, we believe 2H26 earnings will be supported by: a) a strong outlook for the electronics manufacturing services (EMS) business across both non-AI and AI-related activities, despite the shift to a turnkey model, which should result in higher sales but lower margins; b) improving utilisation rates in the integrated circuit (IC) business; and c) a steady recovery in PMS sales for both silicon carbide (SiC) and silicon (Si) products. Management maintained its positive view on the loss trend in 2H26. PMS sales are expected to continue growing qoq in 3Q26, supported by a continued recovery in demand despite the strong sales base in 2Q26. HANA is increasing marketing efforts in both India and Korea, which have started to show initial positive results.
Highlights
Two AI-related projects remain on track, with mass production expected in 3Q26 for both projects.
2027 capex plans are expected to increase significantly, providing a positive trajectory for HANA in 2027-28.
Earnings in 2H26-2028 should be supported by a continued improvement in the PMS business, AI-related projects, and a favourable semiconductor industry outlook.
We maintain BUY with a higher target price of Bt54.00, as we roll forward our valuation to 2027.
Analysis
Two AI-related projects remain on track, with mass production expected to commence in 3Q26. 2027 capex plans are currently under review, but management expects capex to increase significantly. This reinforces our confidence in HANA (Thailand)’s (HANA) continued positive trajectory within the semiconductor and value chain. While the overall upcycle earnings trend remains largely unchanged, management’s comments reaffirmed our strong 2H26-2028 earnings outlook, particularly for Power Master Semiconductor Co., Ltd. (PMS) sales and development to reduce its losses.
With PMS demand improving qoq in 2Q26, 2H26 losses trend is still positive. We expect 2H26 earnings to account for 60% of our full-year 2026 forecast. Despite the strong 2Q26 earnings, partly driven by a slightly faster than-expected narrowing of losses at PMS, we believe 2H26 earnings will be supported by: a) a strong outlook for the electronics manufacturing services (EMS) business across both non-AI and AI-related activities, despite the shift to a turnkey model, which should result in higher sales but lower margins; b) improving utilisation rates in the integrated circuit (IC) business; and c) a steady recovery in PMS sales for both silicon carbide (SiC) and silicon (Si) products. Management maintained its positive view on the loss trend in 2H26. PMS sales are expected to continue growing qoq in 3Q26, supported by a continued recovery in demand despite the strong sales base in 2Q26. HANA is increasing marketing efforts in both India and Korea, which have started to show initial positive results.
BUY (Maintained)
Current price:
Target price:
Upside:
Previous TP :
Bt46.25
Bt54.00
+16.8%
Bt38.00
Analyst
Analyst
Sirithat Prasertwuti
IMPORTANT NOTICE - DISCLOSURES AND DISCLAIMERS
This report is provided subject to, and must be read together with, the full Disclosures / Disclaimers available at this link, which are incorporated by reference into this report. In particular, this report is intended for general circulation and informational purposes only and does not constitute personal investment advice or a recommendation to buy or sell any investment product or security. You should independently evaluate the information and, where necessary, seek advice from a qualified financial adviser regarding the suitability of any investment. Analyst certifications required under applicable regulations, including SEC Regulation AC (where relevant), are included in this report. By accessing, receiving or using this report, you acknowledge that you have read, understood and agreed to be bound by the Disclosures / Disclaimers, as may be amended, supplemented or updated from time to time.
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