hana micron (067310 ks) for 2016 forecast, look back to 2010
TRANSCRIPT
Company Report Feb 26, 2015
Semicon/equipment
BUY (I)
TP: W16,000 (I)
Share price (won, Feb 17) 10,550
Paid-in capital (Wbn) 11
Market cap (Wbn) 236
BPS (won) 6,008
Net debt to equity (%) 133.9
Shares outstanding 22,370,446
Avg daily T/O (2M, Wbn) 4
Avg daily vol (2M, shrs) 350,880
52-week high (won) 11,250
52-week low (won) 5,120
Foreign ownership (%) 5.2
Major shareholders (%)
Chang-Ho Choi & others 25.8
Stock performance (%)
1M 3M 12M
Absolute (0.9) 15.2 77.3
Relative (6.1) 0.4 52.0
Abs (US$) (3.1) 14.3 70.7
020406080100120140160180
0
2,000
4,000
6,000
8,000
10,000
12,000
Feb-13 Feb-14 Feb-15
Hana Micron Inc.(LHS)
Rel. to KOSDAQ(RHS)
(won) (%)
HANA Micron (067310 KS)
For 2016 forecast, look back to 2010
Forecasts and valuations (K-IFRS, consolidated) (Wbn)
FY ends Dec 2012A 2013A 2014E 2015E
Sales 259 278 294 355
Operating profit -7 -5 24 37
Net profit, CI -10 -20 12 27
% YoY -214.0 102.3 -159.5 124.9
P/E (x) -18.7 -7.3 19.7 8.7
P/B (x) 1.4 1.2 1.8 1.5
EV/EBITDA (x) 12.6 11.1 8.0 6.1
ROE (%) -6.9 -15.8 9.8 19.2
Note: Operating profit = gross profit – SG&A expense, CI = controlling interest
Source: Yuanta Securities
Quarterly earnings
(Wbn) 4Q14E % YoY % QoQ Consens vs consens (%)
Sales 77 -6.2 -5.6 81 -5.4
Operating profit 5 TTB -49.0 7 -37.7
Pre-tax profit 2 TTB -64.8 6 -62.3
Net profit 2 TTB -60.2 5 -60.8
Op margin (%) 6.0 TTB -5.1 %pt 9.1 -3.1 %pt
Net margin (%) 2.5 TTB -3.5 %pt 6.1 -3.6 %pt
Note: TTB = turn to black, TTR = turn to red, RR = remain in red
Source: Yuanta Securities
For back-end semicon players in Korea, 2016 should be better than 2015
Earnings momentum for Korea’s back-end semicon players is expected to strengthen in 2016.
In 2014, they successfully turned around, with average sales growing 7%. This is projected to
rise further to 15% this year, as higher System LSI utilization at Samsung Electronics should
lead to increasing orders for companies handling the back-end process.
Of special note, 2016 sales are likely to jump 30% YoY, reaching $1.8bn, as the impact of
DDR4 drives earnings.
A look back to the introduction of DDR3 in 2010
We need to look back to when DDR3 penetration expanded to 58%.
▶ Back in 2010, when DDR3 was starting to become mainstream, sales at back-end players
in Korea jumped 90% YoY. Although we also need to account for the fact that the global PC
market grew 14% YoY, it is clear that the shift to DDR contributed significantly to back-end
sales growth.
▶ This time, with DDR4, the flip-chip (FC) method is another positive for back-end processing
product prices.
Initiate coverage at BUY and target price of W16,000
We initiate coverage on HANA Micron at BUY and a target price of W16,000, which translates
to a 2015E BPS based P/B of 2.3x. A P/B of 2.3x is 5% lower than the 2010 peak of P/B 2.4x.
We focus on: 1) its highest market share in the mobile DRAM back-end process market for its
key clients, which should allow it to benefit from the widespread adoption of DDR4 LPDDR,
expected in 2015; 2) the revenue contribution from 50%-owned HT Micron in Brazil, which
should expand as the company turns around in earnest in 2015; and 3) its new businesses,
including flexible packages and beacon terminals, which should be positive for EV.
2
HANA Micron (067310 KS)
Investment summary We expect the earnings growth of back-end processing players to further strengthen in 2016. Their
shares recently rallied as earnings turned around thanks to cost structure improvements and
prospects for higher sales. Sales are forecast to increase because Samsung Electronics is
expected to ratchet up its System LSI utilization, which should push up the volume of orders for
companies handling the back-end process.
For the sector, 4Q and 1Q tend to be the off-season. Thus, given strengthened earnings
momentum for 2016, now is the time to buy the stocks as they cool off.
We are positive on the semicon back-end processing sector for 2015 and 2016, especially HANA
Micron for the following reasons:
▶ With its advanced stack package technology, the firm controls the largest share of the mobile
DRAM back-end processing market for its key clients. Its leading packaging technology seems
to have allowed it to increase its market share as more smartphones adopt higher-content
mobile DRAM. We believe it stands to benefit most from the earnest adoption of DDR4 mobile
DRAM (LPDDR4) in 2015.
The revenue contribution from HT Micron in Brazil, in which it holds a 50% stake, should expand
as the company turns around in earnest in 2015.HT Micron is a memory module provider mainly
for PC manufacturers and opened its production facilities in Mar 2013. Sales likely came to
W34.6bn (OPM 1%) in 2013 and W69.5bn in 2014 (OPM 3.8%).
▶ We project 2015 sales at W112.0bn and operating margin at 8.3%, a significant improvement.
These figures are quite conservative, in our view, given that it has secured orders from mobile
companies for 2015 deliveries in addition to its existing PC clients.
Meaningful developments with its new businesses, such as flexible packages and beacon
modules, are expected in 2H15, and should bolster its enterprise value.
▶ The firm entered the medical equipment market with its flexible package processing technology,
and its technical edge should mean it is well positioned for the soon-to-emerge flexible display
trend in the mobile world.
▶ Its successful development of a low-power Bluetooth, BLE beacon module has captured
investor attention, as it will be applied to its Smart Commerce Platform, a joint project with KT. It
is also positive that it has safely positioned itself to benefit from the increasing popularity of the
Internet of Things (IoT).
1) Highest share of mobile DRAM back-end
processing market
2) HT Micron turning around in earnest
3) New businesses to make meaningful
developments in 2H15
Time to buy while semicon back-end stocks take a
breather during off-season
3
Company Report
Key features of Korean OSAT companies
HANA Micron STS Semiconductor Signetics AT Semicon
DDR4 mobile DRAM ◎ ○ ○ ○
PC/server DDR4 ◎ ○ ◎
System LSI ○ ○ ◎
Long-term growth roadmap ◎ ◎ ○ ◎
Package test ○ ○ ◎
Note
Leading memory semicon
stacking tech Agile response to
changes in mobile trends
Dominant staus in PC/server
DRAM market
Diversified client and product
portfolios
Provides combined solution for
packaging and test turn-key
Source: Yuanta Securities
Semiconductor supply chain
SEC, SK Hynix Tesna SEMCO, Simmtech, Daeduck Electronics,
Korea Circuit
HANA Micron, STS Semiconductor,
Signetics, AT Semicon
IDM Wafer test Package Package substrate
Source: SEMCO, Tera Probe, Yuanta Securities
Korean OSAT peer valuation consensus (Wbn, %, X)
Company Market
cap
2014 2015E 2014 2015E
Sales OP ROE Sales OP ROE P/E P/B EV/EBITDA P/E P/B EV/EBITDA
HANA Micron 237.1 298.4 26.5 11.5 331.1 32.9 15.5 16.7 1.8 7.9 10.8 1.5 6.5
STS Semiconductor 274.1 555.7 40.3 -8.0 645.2 60.2 16.2 - 1.6 5.0 9.3 1.4 6.3
Signetics 175.7 - - - - - - - - - - - -
Winpac 40.2 52.9 -4.0 - 72.0 6.0 - - - - 6.3 - -
AT Semicon 105.9 150.0 9.5 5.9 180.0 17.0 17.0 13.8 1.2 4.6 9.6 1.0 3.7
Source: FnGuide, Yuanta Securities
4
HANA Micron (067310 KS)
HANA Micron: earnings forecast
We project record earnings for the company in 2015, with consolidated sales estimated at
W355.2bn (21% YoY) and operating profit at W37.4bn (57% YoY, OPM 10.5%). Considering
equity-method gains and losses, net profit is expected to jump 125% YoY to W27.0bn.
Hana Micron earnings (Wbn)
1Q13 2Q13 3Q13 4Q13 1Q14 2Q14 3Q14 4Q14E 1Q15E 2Q15E 3Q15E 4Q15E 2013 2014 2015E
Sales 51.0 69.9 75.0 82.2 64.4 71.1 80.4 76.7 68.7 89.3 106.6 90.5 278.1 292.7 355.2
Chg (% YoY) -12 4 22 13 26 2 7 -7 7 26 33 18 7 5 21
Chg (% QoQ) -30 37 7 10 -22 10 13 -5 -10 30 19 -15 - - -
Memory 31.7 43.8 37.2 38.4 30.4 37.2 40.7 32.2 33.4 41.4 46.5 42.0 151.1 140.5 163.4
Other pkg. 12.1 14.0 16.3 17.5 21.7 24.9 28.7 21.6 21.2 25.4 28.5 25.7 59.9 96.9 100.7
Semi-finished 1.5 2.5 10.8 12.1 12.8 11.1 14.2 15.5 6.1 13.8 23.0 14.3 27.0 53.5 57.1
Hana Materials 5.8 9.6 10.6 14.1 9.1 7.1 8.2 7.4 8.0 8.8 8.7 8.5 40.1 31.8 34.0
OP -4.6 2.2 0.1 -3.2 3.1 7.1 9.0 4.6 7.4 9.6 11.1 9.3 -5.5 23.8 37.4
Chg (% YoY) RR TTP -80 RR TTP 218 10,270 TTP 138 35 23 102 RR TTP 57
Chg (% QoQ) RR TTP -96 TTL TTP 130 27 -49 60 30 16 -16 - - -
OPM (%) -9 3 0 -4 5 10 11 6 11 11 10 10 -2 8 11
Source: Yuanta Securities
We forecast the package division’s 2015 sales at W264.0bn (11% YoY), with operating margin
recovering to the double digits buttressed by improved cost structure and product mix.
By product, sales are projected as follows:
▶ Sales are expected to be strong led by mobile DRAM, eMMC, and EMCP, while the firm
expects DRAM sales to the world’s second-largest memory maker to grow in the double digits.
▶ The main application for the firm’s FC-CSP is for SSD controllers, and the firm’s share of the
SSD controller market for its key clients was over 90% in 2014. Yet, we expect a slight fall in
sales in 2015 because clients are planning to diversify vendors.
Package sales breakdown
Source: Yuanta Securities
Consolidated 2015 OP projected at W37.4bn
(57% YoY)
2015 package division sales forecast at
W264.0bn
0
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50
60
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80
90
1Q11 3Q11 1Q12 3Q12 1Q13 3Q13 1Q14 3Q14 1Q15E 3Q15E 1Q16E 3Q16E
(Wbn)FLIP-CHIP FBGA Other memoryeMCP eMMC Mobile DRAMMCP BOC
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Company Report
HANA Materials, a consolidated subsidiary, is projected to post 2015 sales of W3.4bn (7% YoY)
and operating profit of W3.8bn (16% YoY).
Last year, intense silicon ring and cathode price competition eroded its earnings. In 2015, however,
we expect a slight rebound as: 1) unit price discounts should not be as deep as in 2014; and 2) its
key clients are planning to expand capacity.
HANA Materials: sales and operating margin
Source: Yuanta Securities
HANA Micron: ownership structure and subsidiaries
50%54.2% 80% 51.2% 100%
24.38%
18.95%
HANA Micron America, Inc
Innomate EP WORKSHANA
Materials HT Micron
CH Choi
H&Q
Source: HANA Micron, Yuanta Securities
HANA Materials 2015 OP estimated at W3.8bn
0%
5%
10%
15%
20%
25%
30%
0
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4
6
8
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12
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16
1Q12 3Q12 1Q13 3Q13 1Q14 3Q14 1Q15E 3Q15E 1Q16E 3Q16E
(Wbn)
Sales
Operating margin
6
HANA Micron (067310 KS)
In 2015, sales at HT Micron, the company’s 50%-owned subsidiary in Brazil, are likely to come to
W112.0bn, entering an expansionary phase. In line with normalizing sales, operating margin will
also likely widen significantly from 3.8% in 2014 to 8.3%. Until 2014, HT Micron’s major source of
revenue was DRAM modules for PCs, while it has been diversifying into DRAM module for
smartphones and tablets as well in 2015, which should boost earnings.
HT Micron manufactures memory modules in Brazil. In addition to equity-method gains, the
subsidiary creates synergies with the parent company.
1) Semi-finished goods sales: The parent company supplies semi-finished goods after doing the
first three steps of semicon packaging (wafer back grinding, tape mounting, and sawing) to HT
Micron.
2) Royalty revenue: The parent company receives some of HT Micron’s packaging sales as
royalties for sharing technology.
Semiconductor packaging flow
Wafer back grinding Sawing Die attach
MoldingWire bond Marking
Tape mount
Trim & form
Hana Micron supplies semi-finished goods going through these steps
Source: Company data, Yuanta Securities
HT Micron’s 2015 sales estimated at W112.0bn
HT Micron creates synergies with parent
company
7
Company Report
To forecast 2016 package industry, look back to 2010 In 2010, as DDR3 market penetration exceeded 50%, semicon packaging firms’ earnings surged,
with sales at back-end players in Korea jumping 90% YoY. It was remarkable growth, even
considering global PC market growth 14% of YoY. Thus, memory semicon bit growth was strong at
45%. We can assume that the transition from DDR2 to DDR3 raised semicon packaging ASP.
We expect earnings momentum to strengthen further, as DDR4 market penetration is likely to rise
from 23% in 2015 to 60% in 2016. Unfortunately, PC market growth is likely to be weak. However,
for some DDR4, the flip-chip (FC) method is likely to raise packaging prices.
In 2010, DDR3 drove semicon packaging firms growth DDR4’s market penetration likely to reach 60% in 2016
Source: Yuanta Securities Source: Yuanta Securities
DRAM DDR transition and packaging sales and forecast since 2004
Source: Yuanta Securities
Semicon back-end sales surged in 2010, when
DDR3 became mainstream
In 2016, DDR 4 penetration rate is likely
to reach 60%
387 2,229 8,912
17,311 24,643
100
300
500
700
900
1,100
1,300
-
5,000
10,000
15,000
20,000
25,000
30,000
35,000
2008 2009 2010 2011 2012
($mn)(mn units)OthersDDR4DDR3DDR2DDR1Korean OSAT Revenue (R)
130 175
1,352 13,845
44,064
1,000
1,100
1,200
1,300
1,400
1,500
1,600
1,700
1,800
1,900
-
10,000
20,000
30,000
40,000
50,000
60,000
70,000
80,000
90,000
2012 2013 2014 2015E 2016E
($mn)(mn Units) OthersDDR4DDR3DDR2DDR1Korean OSAT Revenue (R)
73%58%
31%12% 9% 6% 4% 2% 1.3% 0.9% 0.6% 0% 0%
7%26%
55%78% 80%
68%
35%21% 15% 11% 9% 7% 5%
1% 4%21%
58%76% 82% 87% 87%
70%
50%
3%23%
60%
-
200 400
600
800
1,000
1,200
1,400
1,600
1,800
2,000
0%
10%20%
30%
40%
50%
60%
70%
80%
90%
100%
2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015E 2016E
($mn)
Others DDR4 DDR3 DDR2 DDR1 Korean OSAT Revenue (R)
8
HANA Micron (067310 KS)
Global OSAT: sales ($mn)
Company Country 2005 2006 2007 2008 2009 2010 2011 2012 2013
ASE Taiwan 2,583 3,026 3,086 2,952 2,547 3,903 4,252 4,298 4,740
Amkor Technology US 2,099 2,728 2,739 2,658 2,179 2,939 2,776 2,760 2,956
SPIL Taiwan 1,343 1,728 1,967 1,918 1,761 2,104 2,024 2,186 2,335
STATS ChipPAC Singapore 1,157 1,617 1,631 1,658 1,326 1,678 1,707 1,702 1,599
Powertech Technology Taiwan 348 522 744 994 947 1,173 1,252 1,408 1,267
JCET China 182 223 263 349 347 531 611 714 850
J-Devices Japan - - - 69 165 600 565 619 843
UTAC Singapore 326 638 765 711 601 925 981 978 748
ChipMOS Technologies Taiwan 463 625 718 519 380 591 620 662 649
Chipbond Technology Taiwan 0 127 178 176 170 431 441 508 530
STS Semiconductor Korea 116 186 220 175 180 322 428 472 499
King Yuan Electronics Taiwan 319 422 413 413 318 490 385 422 426
Tianshui Huatian China - - - - - - - 257 398
Carsem Semiconductor Malaysia 264 354 372 370 275 394 360 356 350
Unisem Malaysia 150 189 285 373 300 433 380 354 315
Formosa Advanced Taiwan 153 193 271 323 271 375 404 360 302
Walton Advanced Engineering Taiwan 172 225 237 190 168 260 260 259 296
Nantong Fujitsu Microelectronics China 215 272 288 173 181 254 0 251 287
AOI Electronics Japan - 177 178 182 199 205 257 268 282
Signetics Korea - - 168 176 156 208 250 281 261
Tera Probe Japan - - - - - - 225 - -
Hana-Micron Korea 114 151 176 134 129 239 230 230 254
Greatek Taiwan 215 252 279 252 267 324 - - -
Hana Microelectronics Thailand - - - - 131 - - - -
Shinko Electric Japan 227 309 359 349 164 - - - -
EEMS EMEA - 181 214 225 - - - - -
International Semiconductor Taiwan 144 172 182 - - - - - -
Advanced Interconnect Singapore 186 - - - - - - - -
ASAT China 177 - - - - - - - -
Orient Semiconductor Taiwan 158 - - - - - - - -
Semitech Korea - 52 81 57 56 91 103 97 -
Winpac Korea - - - - - 51 59 59 46
AT Semicon Korea - - - - - 83 92 86 72
Total Market 15,170 19,181 20,600 20,101 17,150 23,593 24,024 24,526 25,082
Source: Yuanta Securities
9
Company Report
Overseas OSAT peer valuation ($mn, %, x)
Company Market
cap
2014 2015E 2014 2015E
Sales OP ROE Sales OP ROE P/E P/B EV/EBITDA P/E P/B EV/EBITDA
AMKOR 2,112 3,058 245 14.0 3,284 342 15.7 15.9 1.8 4.6 11.0 1.6 3.8
STATS ChipPac 797 - - - - - - - - - - - -
ASE 10,750 8,081 917 16.7 9,605 1,070 17.1 14.8 2.4 7.4 13.0 2.2 6.5
SPIL 5,416 2,615 411 15.9 2,903 497 - 14.8 - - 12.9 - -
JCET 2,338 985 40 6.5 1,281 68 10.1 64.3 3.9 11.1 39.4 3.7 9.5
ChipMOS 711 722 119 - 783 140 - 15.2 1.4 3.5 10.8 1.1 3.2
Chipbond 1,301 570 96 11.1 643 121 13.2 16.8 1.8 8.7 13.2 1.7 7.8
King Yuan 1,005 519 97 12.0 567 110 12.8 11.7 1.4 5.3 10.6 1.3 4.7
AOI 513 348 34 7.2 361 61 14.8 28.8 2.0 8.8 12.6 1.7 5.1
Tera Probe 75 213 8 2.0 180 11 2.6 22.3 - - - - -
Greatek 680 332 79 17.3 347 85 16.8 12.8 1.6 3.7 9.1 1.5 3.6
Note: STATS ChipPac was acquired by JCET (Jiangsu Changjiang Electronics Technology) Source: Bloomberg, Yuanta Securities
10
HANA Micron (067310 KS)
HANA Micron (067310 KS) pro forma financial statements (K-IFRS, consolidated)
Statement of comprehensive income Statement of financial position
FY ends Dec (Wbn) 2012A 2013A 2014E 2015E 2016E FY ends Dec (Wbn) 2012A 2013A 2014E 2015E 2016E
Sales 259 278 294 355 435 Current assets 52 88 87 125 172
Cost of sales 245 256 245 293 352 Cash & cash equiv 4 4 6 33 61
Gross profit 13 22 49 63 83 Accts rec & other 28 51 46 53 65
SG&A 21 27 25 25 36 Inventory 17 22 23 27 34
Operating profit -7 -5 24 37 47 Non-current assets 258 280 277 277 278
EBITDA 26 31 52 66 76 Tangible assets 220 250 252 253 256
Non-op profit/loss -5 -12 -8 -4 0 Investment in affiliate 11 4 4 4 4
Forex gain/loss 0 0 -1 -3 -3 Other non-current 11 4 2 2 2
Net interest inc -6 -8 -8 -7 -5 Total assets 310 368 364 401 451
Equity-meth gain/loss -1 -2 -1 2 4 Current liabilities 75 171 242 396 552
Other 1 -2 3 4 4 Accts payable & other 23 28 33 37 43
Net prof before income tax -13 -17 16 34 47 ST financial liabilities 23 61 129 279 429
Income tax -3 2 4 7 9 Liquid LT liabilities 28 72 76 76 76
Net profit from cont op -10 -19 12 27 38 Non-current liabilities 97 72 -15 -159 -303
Net profit from discont op 0 0 0 0 0 LT financial liabilities 93 68 -23 -167 -311
Net profit -10 -19 12 27 38 Debentures 1 0 0 0 0
NP for controlling int -10 -20 12 27 38 Total liabilities 172 243 227 237 249
Total comprehensive inc -10 -20 12 25 36 Equity, controlling int 138 117 128 153 189
TCI for controlling int -10 -21 12 25 36 Paid-in capital 11 11 11 11 11
Note: Operating profit calculation same as K-GAAP (sales - COGS - SG&A). Capital surplus 89 89 90 90 90
Retained earnings 34 13 25 52 90
Equity, non-control int 0 8 9 11 13
Total equity 138 126 137 164 202
Net debt 140 192 172 151 129
Total debt 146 203 184 190 196
Cash flow statement Valuation FY ends Dec (Wbn) 2012A 2013A 2014E 2015E 2016E FY ends Dec 2012A 2013A 2014E 2015E 2016E
Operating cash flow 7 7 56 52 54 EPS (won) -460 -902 536 1,207 1,683
Net profit -10 -19 12 27 38 BPS (won) 6,364 5,393 5,947 6,852 8,450
Depreciation & amort 32 35 27 27 27 EBITDA/shr (won) 1,186 1,399 2,332 2,937 3,389
Forex gain/loss 0 0 0 3 3 SPS (won) 11,936 12,432 13,123 15,877 19,434
Affiliate invest gain/loss 1 2 1 -2 -4 DPS (won) 0 0 0 0 0
Inc(dec) net working cap -17 -22 6 -9 -16 P/E (x) -18.7 -7.3 19.7 8.7 6.3
Other 2 11 9 6 6 P/B (x) 1.4 1.2 1.8 1.5 1.2
Investing cash flow -41 -35 -27 -34 -36 EV/EBITDA (x) 12.6 11.1 8.0 6.1 5.0
Investment 0 -3 1 0 0 PSR (x) 0.7 0.5 0.8 0.7 0.5
Inc in tangible assets -50 -32 -22 -28 -30
Dec in tangible assets 4 4 0 0 0 Key financial dataOther 5 -4 -6 -6 -6 FY ends Dec 2012A 2013A 2014E 2015E 2016E
Financing cash flow 31 29 -27 -3 -3 Sales (% YoY) -12.1 7.5 5.6 21.0 22.4
Inc(dec) in ST fin liab -27 26 68 150 150 Operating profit (%YoY) -155.1 -25.5 -536.2 56.8 26.8
Inc(dec) in LT fin liab 57 8 -88 -144 -144 NP, CI (%YoY) -214.0 102.3 -159.5 124.9 39.5
Inc(dec) in equity 5 0 0 0 0 Gross margin (%) 5.2 7.9 16.6 17.6 19.1
Cash dividend -2 0 0 0 0 Operating margin (%) -2.8 -2.0 8.1 10.5 10.9
Other -2 -6 -7 -9 -9 NP, CI margin (%) -3.9 -7.3 4.1 7.6 8.7
Other cash flow 0 0 1 11 14 EBITDA margin (%) 9.9 11.3 17.8 18.5 17.4
Inc (dec) in cash & eq -3 0 3 26 29 ROIC (%) -2.5 -2.2 5.9 9.8 12.1
Beginning cash & equiv 6 4 4 6 33 ROA (%) -3.2 -5.9 3.3 7.1 8.8
Ending cash & equiv 4 4 6 33 61 ROE (%) -6.9 -15.8 9.8 19.2 22.0
NOPLAT -1 -1 2 4 5 Debt-to-equity (%) 124.4 193.1 165.5 144.9 123.1
FCF -40 -23 31 22 20 Net debt-to-equity (%) 101.2 163.6 133.9 98.8 68.1
OP/financing cost (x) -1.1 -0.6 2.8 4.4 5.4
Note: EPS, BPS, P/E and P/B are based on controlling interest
For valuation metrics such as P/E, historical figures are based on annual averages, estimates on current price
For ROA or ROE, assets and equity are averages of end-of-year figures for given year and year prior
Data to 2010 based on K-GAAP and from 2011, K-IFRS
Source: Yuanta Securities
11
Company Report
P/E band chart P/B band chart
HANA Micron (067310 KS) ratings and target price history
Date Rating TP (won)
2015-02-23 BUY 16,000
Source: Yuanta Securities
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As of the publication date of this report, Yuanta Securities Korea Co., Ltd. does not own a stake in excess of 1%, nor does it have any interest whatsoever, in the subject company (ies). The material contained herein was not disclosed by Yuanta Securities Korea Co., Ltd. to any institutional investors or third parties prior to its publication. The analyst (s) of this report or the analyst (s)’ spouse does not have any financial interest in the securities of the subject company (ies) mentioned herein, nor financial interest of any nature related to the subject company (ies) (including without limitation, whether it consists of any option, right, warrant, future, long or short position), as of the publication date of this report.
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Stock and sector ratings Stock ratings include an Investment Rating (Strong Buy, Buy, Hold, Sell) based on the expected absolute return of a stock over
the next 6 -12 months. - Strong Buy: Expected to return 30% or more - Buy: Expected to return between 10% and 30% - Hold: Expected to return between -10 and +10%
- Sell: Expected to return -10% or less
Sector ratings suggest 6 to 12 - month forward investment weighting of a given sector compared to its market capitalization weighting.
- Overweight: Investment weighting is higher than the market capitalization weighting - Neutral: Investment weighting is equal to the market capitalization weighting - Underweight: Investment weighting is lower than the market capitalization weighting
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25
Jan-07 Jan-10 Jan-13 Jan-16
Price (adj)0.3 x0.8 x1.4 x1.9 x2.4 x
(W'000)
12
HANA Micron (067310 KS)
Yuanta Securities (Korea) International Network
Research Center
Yuanta Securities Building
Euljiro 76 Jung-gu
Seoul, Korea 100-845
Tel: +822 3770 3454
Seoul
Head Office
Yuanta Securities Building
Euljiro 76 Jung-gu
Seoul, Korea 100-845
Tel: +822 3770 3454
Hong Kong
TONGYANG Securities Hong Kong Limited
#2107, 21F, Hutchison House, 10 Harcourt Road,
Central, Hong Kong
Tel: +852 3980 6000
Manila
TONGYANG Savings Bank
Ground Floor Chatham House 116 Valero cor. V.A.
Rufino streets, Salcedo Village, Makati City Metro
Manila, Philippines
Tel: +63 2 845 3838
Phnom Penh
TONGYANG Securities (Cambodia) Plc.
#138, 2nd Floor, Paragon Bldg, Norodom Blvd,
Phnom Penh, Cambodia
Tel: +855 23 224 125