Global investment bank JP Morgan assessed HANMI Semiconductor as the company that would benefit the most from the expansion of the artificial intelligence (AI) industry and the demand for high bandwidth memory (HBM). JP Morgan issued an investment opinion of "overweight" for HANMI Semiconductor and set a target price of 150,000 won, which is 52.4% higher than the previous closing price of 98,400 won.
According to the financial investment industry on the 19th, JP Morgan noted that there is indeed a competitive crisis surrounding the TCB market. TCB is post-processing equipment used in HBM production. With the possibility of competitors entering the market being discussed, the stock price of HANMI Semiconductor has halved from its peak of 196,200 won on June 19th last year.
JP Morgan projected that HANMI Semiconductor will maintain steady demand for HBM TCB as it has secured customers such as SK hynix and Micron Technology in the United States. Furthermore, JP Morgan believes that HANMI Semiconductor can maintain a market share of around 90% due to its technological competitiveness, including plans to upgrade to fluxless TCB this year. Fluxless refers to a method that does not use flux, which acts as an adhesive between chip dies.
JP Morgan projected this year that HANMI Semiconductor's revenue and operating profit would reach 821 billion won and 400 billion won, respectively, which are increases of 46.9% and 56.9% compared to last year.
JP Morgan stated, "If the HBM market slows down and competition intensifies, it could pose risks for HANMI Semiconductor, which has a high dependence on TCB sales," but also noted, "Considering its high operating profit margin and strong market share, there is long-term investment appeal."