Merrill Lynch Raises Hanmi Semiconductor Target Price to 300,000 Won... "Benefiting from HBM Expansion"

Bank of America (BofA) Merrill Lynch raised its target price for Hanmi Semiconductor to 300,000 won, reflecting the company's dominant position in the high-bandwidth memory (HBM) market and its mid- to long-term growth potential. The investment rating was upgraded from "Neutral" to "Buy."

In a report released on the 23rd, Merrill Lynch stated, "Hanmi Semiconductor has secured a market share of more than 50% in the market for TC bonder equipment for HBM supplied to SK Hynix and Micron," adding, "Its profitability and market position have been proven, as evidenced by an operating margin exceeding 40% for two consecutive years."

Although short-term earnings may slow ahead of the mass production of HBM4, HBM4E, and HBM5, this is seen as a temporary revenue bottleneck. The company is expected to pass its trough in the first half of this year and recover in the second half, then enter a phase of strong growth in 2027-2028.

Hanmi Semiconductor plans to significantly increase the proportion of its supply to Samsung Electronics and Chinese semiconductor companies starting in 2027. As of 2024, its revenue structure is concentrated on a specific customer, but by 2027 it is expected to be reshaped into a more balanced portfolio, with Micron, SK Hynix, and Samsung Electronics each accounting for similar portions, thereby driving revenue growth.

Merrill Lynch commented, "The effects of new fab operations, such as SK Hynix's Yongin fab and Samsung Electronics' P5 (Plant 5), will be fully reflected in earnings in 2027-2028," adding, "Based on its high-margin structure, profit growth is assured."