Kiwoom Securities said on the 4th that, for Hanwha Vision(489790), the current share-price valuation looks attractive given the future growth of the high-bandwidth memory (HBM) market after the recent sharp stock decline. It maintained a "Buy" rating and lowered the target price to 100,000 won. Hanwha Vision's previous closing price was 43,500 won.
Hanwha Vision posted second-quarter results this year of 542.3 billion won in revenue and 65.6 billion won in operating profit. Those figures were up 23% and 197% from the previous quarter, respectively, beating Kiwoom Securities' prior estimates and the consensus.
Park Yuak, an analyst at Kiwoom Securities, said, "Results in the security division rose sharply thanks to higher selling prices for CCTVs, and the consolidated subsidiary Hanwha Semitek also grew on revenue recognition from surface-mount technology (SMT) equipment and TC bonders," adding, "Additional orders for SK hynix-bound TC bonders appear to have proceeded, so results in the second half are also expected to trend positively."
However, operating profit in the third quarter this year was expected to decline about 25% from this quarter, due to recognition of one-off expenses. But fourth-quarter results for industrial equipment were projected to rise significantly on revenue recognition from SK hynix-bound TC bonders and the removal of one-off expenses.
Hanwha Vision's share price has plunged on concerns about production setbacks for SK hynix's sixth-generation high-bandwidth memory (HBM4) and a decline in semiconductor stocks.
Park said, "The current share-price valuation is at a level prior to reflecting the growth potential of TC bonders for HBM, and it is attractive considering the HBM market's growth over the next two years."
At the same time, it was judged to be the time to shift the investment point for the semiconductor sector from "general-purpose memory price increases" to "HBM market growth in 2027–2028."
Park explained, "Therefore, we present Hanwha Vision, which holds about a 50% share of SK hynix HBM-bound TC bonders, as the sector top pick."