KOSDAQSemiconductors067310

HanaMicronInc

₩52,100▲ 1.76%2026-10-02 close

Market Cap

₩3.4T

Turnover

₩113.3B

Volume

2.2M

Shares out.

66.5M

PER

12.2×

PBR

—

EPS

₩2,855

Dividend Yield

0.20%

PER, EPS, PBR and BPS are calculated in-house from the last 4 quarters (2025Q3–2026Q2) · Dividend yield is based on ₩70 per share · Prices as of the 2026-10-02 close

Report overview

Outsourced Back-End Boom Meets Record Quarterly Profit

A memory price upcycle combined with rising outsourcing of commodity back-end work drove record quarterly revenue and operating profit in Q2 2026; the question now is whether the high-teens-plus margin structure holds after the capacity build-out.

1
Q2 2026 revenue of KRW 683.2bn and operating profit of KRW 142.3bn set quarterly records, with the operating margin reaching 20.8% on company-disclosed figures.
2
FY2025 revenue was KRW 1,534.4bn with operating profit of KRW 127.7bn; the first half of 2026 alone delivered KRW 1,190.9bn of revenue and KRW 214.4bn of operating profit.
3
The Bac Giang plant in Vietnam runs as a dedicated memory back-end line for SK hynix, and the company said monthly packaging capacity should exceed 100 million units by year-end.
4
On an owners' net income basis the company swung from losses in 2023-2024 to profit in 2025, and quarterly net income expanded sharply in Q1-Q2 2026.
5
The debt-to-equity ratio was still high at 209.2% at end-2025, and management said it is considering roughly doubling 2027 capex from the roughly KRW 60bn planned for 2026.

Business structure

Founded in 2001, Hana Micron is a specialist in semiconductor back-end packaging and testing, operating through entities in Korea, Vietnam and Brazil.

The Asan headquarters site in Korea handles system and memory chip packaging and testing for Samsung Electronics, producing radio-frequency chips and mobile application processors using flip-chip packaging.

The Bac Giang plant in Vietnam was built as a de facto dedicated memory back-end base for SK hynix under a 2021 outsourced processing agreement, mainly covering packaging and testing of commodity memory.

Within the same Vietnamese operation, the Bac Ninh plant focuses on system chips such as fingerprint sensors for smartphones. The Brazilian unit buys wafers from memory makers, processes them into finished goods and sells them to set makers, and supplies data center server products.

According to company figures for Q2 2026, headquarters saw growing system-chip sales including large-body products, the Vietnamese unit posted more than KRW 250bn in revenue, and the Brazilian unit recorded KRW 272.5bn, already exceeding its full prior-year revenue on memory price gains.

The consolidated accounts include partly owned subsidiaries such as the semiconductor materials affiliate, so of KRW 652.7bn of equity at end-2025, KRW 253.9bn was non-controlling interest, which is why total net income of KRW 65.6bn differs materially from owners' net income of KRW 38.1bn.

On the technology roadmap, the company is developing 2.5D advanced packaging and participates in a materials-parts-equipment testbed project to localize 12-inch fan-out wafer-level packages.

Several listed Korean peers compete in back-end services and the company remains small versus global tier-one OSAT players, though Sangsangin Investment & Securities noted in a May 2026 report that management targets a top-five global OSAT position by 2030.

Earnings trend

Quarterly revenue · Operating profit

₩340.2B₩30.2B25Q2₩432.4B₩38.4B25Q3₩450.1B₩47.3B25Q4₩507.7B₩72B26Q1₩683.2B₩142.3B26Q2

RevenueOperating profit

Annual revenue · Operating profit

₩894.4B₩103.5B2022₩968B₩57.9B2023₩1.3T₩106.8B2024₩1.5T₩127.7B2025

RevenueOperating profit

Quarterly results · Last 5 quarters
Quarter	Revenue	Operating profit	Op. margin
2025Q2	₩340.2B	₩30.2B	8.9%
2025Q3	₩432.4B	₩38.4B	8.9%
2025Q4	₩450.1B	₩47.3B	10.5%
2026Q1	₩507.7B	₩72B	14.2%
2026Q2	₩683.2B	₩142.3B	20.8%

Annual results
Year	Revenue	Operating profit	Net income (parent)	Op. margin	ROE	Debt-to-equity
2022	₩894.4B	₩103.5B	₩2.8B	11.6%	1.1%	188.6%
2023	₩968B	₩57.9B	-₩13.5B	6.0%	−4.4%	216.9%
2024	₩1.3T	₩106.8B	-₩23.8B	8.5%	−6.4%	221.0%
2025	₩1.5T	₩127.7B	₩38.1B	8.3%	9.6%	209.2%

Consolidated basis (financial statements including subsidiaries) · Final figures from DART filings · Net income attributable to owners of the parent · Data as of 2026-09-04

Earnings analysis

On confirmed figures, revenue rose four years running: KRW 894.4bn in 2022, KRW 968.0bn in 2023, KRW 1,250.7bn in 2024 and KRW 1,534.4bn in 2025.

The operating margin, however, fell from 11.6% in 2022 to 6.0% in 2023 and stayed at 8.5% in 2024 and 8.3% in 2025, while owners' net income was negative KRW 13.5bn in 2023 and negative KRW 23.8bn in 2024 before turning to a KRW 38.1bn profit in 2025.

Management has attributed that gap between growing sales and negative bottom-line results to front-loaded large-scale investment in the Vietnamese unit and the resulting temporary rise in cost of sales, plus higher financial costs including interest from capex-related borrowings.

The quarterly trend has been clearly upward. Revenue climbed for four straight quarters, from KRW 340.2bn in Q2 2025 to KRW 432.4bn, KRW 450.1bn, KRW 507.7bn and KRW 683.2bn in Q2 2026.

Operating profit moved from KRW 30.2bn to KRW 38.4bn, KRW 47.3bn, KRW 72.0bn and KRW 142.3bn over the same span, lifting the margin from 8.9% to 20.8% (the company said Q2 2026 revenue and operating profit rose 101% and 371% year on year to quarterly records, with the margin up 11.9 percentage points).

Owners' net income also expanded, from KRW 3.2bn in Q2 2025 to KRW 61.0bn in Q1 2026 and KRW 71.7bn in Q2 2026, though brokerage commentary flagged a one-off gain in the first quarter of 2026, so earnings quality is best assessed quarter by quarter.

On cash flow, operating cash flow jumped from KRW 41.0bn in 2024 to KRW 174.9bn in 2025, and the debt-to-equity ratio eased from 221.0% to 209.2%, yet total liabilities of KRW 1,365.2bn remain more than twice equity of KRW 652.7bn.

First-half 2026 alone produced KRW 1,190.9bn of revenue and KRW 214.4bn of operating profit, already far above the full-year 2025 operating profit.

Industry analysis

Earnings at outsourced back-end providers track the memory cycle and customers' production allocation directly.

The current phase is an AI-server-led price upturn: as major memory makers concentrate capacity on AI and server products, commodity supply has tightened, and DRAMeXchange data showed the benchmark commodity DRAM (DDR4 8Gb) August contract price at USD 25, up 4.17% month on month, with the industry expecting a wider increase in the third quarter.

Views on the pace of gains diverge, however. TrendForce projected commodity DRAM prices rising 13-18% quarter on quarter in Q3 2026, a moderation from the 58-63% surge in the second quarter, citing record price levels reaching the limit of what PC and smartphone customers can absorb.

This environment cuts two ways for back-end outsourcers. First, Daishin Securities projected a 23% annual average revenue growth rate for the Vietnamese unit over 2025-2028, citing expanded outsourcing of legacy chips as SK hynix runs short of in-house back-end space.

Second, a model like Brazil's, which buys wafers and resells finished products, widens margins when prices rise but is equally sensitive on the way down.

Competitively, the company ranks among the larger listed Korean back-end names and leans on offshore sites for cost response, yet in advanced packaging it must compete with track records already established by global tier-one OSAT firms and equipment and substrate suppliers.

Daishin Securities said that over the medium to long term the company would build an advanced packaging track record in edge areas that large rivals de-prioritize, extending into higher-value product groups.

Outlook

Management's stated direction is capacity expansion plus product diversification.

The company said it would sustain growth in the second half through capacity additions at key sites and a broader product mix, expanding memory turnkey output at the Bac Giang plant, enlarging the Bac Ninh cleanroom, and pushing server DRAM supply and new product commercialization at the Brazilian unit.

Specifically, the company expects Bac Giang's memory packaging capacity for SK hynix to exceed 100 million units per month by end-2026, with turnkey volume alone, covering wafer packaging through test, module assembly and module test, at around 72 million units.

CEO Lee Dong-chul said the customer had provided next-year volume forecasts and requested additional investment, so the company plans an expansion maximizing existing space, adding that because Bac Giang runs exclusively for SK hynix, utilization for the capex is largely underpinned and that while there is no formal long-term agreement, comparable protective arrangements are in place.

On funding, the company said it plans about KRW 60bn of capex in 2026 and is reviewing roughly double that for 2027, with the business plan to be set in October-November, and that internal free cash flow should suffice, leaving no plan to raise money in the capital markets.

Domestically it is pursuing a fifth line at the Asan headquarters, and said the Bac Ninh cleanroom would be expanded from about 800 pyeong to 2,700 pyeong by September.

On Brazil, however, management noted that revenue rose because memory prices rose while volume increased only modestly year on year, making volume acquisition the key going forward.

As for market estimates, Sangsangin Investment & Securities forecast 2026 revenue of KRW 2,158.9bn and operating profit of KRW 314.3bn in a May 2026 report, while Korea Investment & Securities put 2026 revenue at KRW 2,413.0bn and operating profit at KRW 343.3bn in a July 2026 report. These are brokerage estimates, not confirmed company guidance.

Valuation

PER

12.2×

PBR

—

ROE

37.8%

EPS

₩2,855

BPS

—

Dividend per share

₩70

Valuation here sits in a phase where the denominator is moving fast. Owners' net income swung from losses in 2023-2024 to profit in 2025 and expanded again through Q1-Q2 2026, so a price-earnings multiple based on the most recent four quarters is hard to compare directly with earlier years of losses and thin profits.

Against net assets the shares trade at a premium, and because a large share of consolidated equity is non-controlling interest, the price-to-book multiple varies considerably depending on which equity base is used, which is the source of the gap between in-house calculations and the figure published by the Korea Exchange.

Dividends have been paid since 2022 but remain small relative to earnings, so the dividend yield is below the market average.

For reference, Daishin Securities said in a June 2026 initiation report that it applied a target multiple of 21 times, the 2023-2026 average 12-month forward multiple plus one standard deviation.

Ultimately, what any multiple implies depends on whether the 20.8% operating margin seen in Q2 2026 holds after the capacity build-out, and how much of the profit accrues to controlling shareholders.

PER, EPS, PBR and BPS are all calculated in-house (the same method as Naver and Toss) · Dividend yield = cash dividend per share from DART filings (supplemented by KRX) ÷ current price · As of 2026-09-04

Bull factors

Structural growth in outsourced commodity memory back-end work

As memory makers concentrate in-house capacity on AI and server products, packaging and testing of commodity devices is shifting outward.

Daishin Securities said the Vietnamese unit had moved to a cost-plus-margin pricing structure securing a stable mid-to-high single-digit operating margin, and projected 23% average annual revenue growth for that unit over 2025-2028 on expanded legacy-chip outsourcing as SK hynix runs short of back-end space.

The company itself said it had received a request for additional investment from the customer and that Bac Giang, as a dedicated line, has utilization largely underpinned. If that structure holds, room for improvement in operating metrics remains.

The margin shift is visible in reported numbers

The quarterly operating margin rose from 8.9% in Q2 2025 to 8.9%, 10.5%, 14.2% and 20.8% in the following four quarters. Profit grew far faster than revenue, suggesting fixed-cost leverage and changes in pricing and product mix worked together.

The company said system-chip sales such as large-body products keep expanding at headquarters, indicating a margin contributor beyond memory volume. Whether this margin reflects a cycle peak or a structural change remains to be verified in coming quarters.

Better cash generation and self-funded capex intent

Operating cash flow jumped from KRW 41.0bn in 2024 to KRW 174.9bn in 2025, and the debt-to-equity ratio eased from 221.0% to 209.2%.

The company says the expansion can be funded from internal cash without outside financing, and the CFO said internal free cash flow suffices, leaving no plan to raise capital in the markets.

Given a history in which rights issues and rising borrowings eroded owners' earnings, funding method matters from a shareholder perspective. Actual execution will need to be confirmed through future disclosures.

Bear factors

A large slice of profit rides on price variables

The Brazilian unit buys memory wafers and processes and sells them as finished goods, so its results swell in a rising price environment. Management itself said revenue rose because memory prices rose, with volume up only modestly year on year, making volume acquisition the key issue ahead.

TrendForce put Q3 2026 commodity DRAM price growth at 13-18%, moderating from 58-63% in the second quarter, citing record prices reaching the limit of what PC and smartphone customers can absorb. Should price momentum slow or reverse, the same structure works in the opposite direction.

High leverage alongside stepped-up investment

Total liabilities of KRW 1,365.2bn at end-2025 exceed twice the KRW 652.7bn of equity, and the 209.2% debt-to-equity ratio is above the 188.6% of 2022. The company said it plans about KRW 60bn of capex in 2026 and targets roughly double that in 2027, which could again raise depreciation and financial cost burdens.

In the past, higher costs from front-loaded Vietnamese investment and financial costs from expanded borrowings were cited as causes of net losses. If new capacity is not filled as planned, fixed-cost burdens could unwind the margin gains.

Customer concentration and governance history

By site, the structure is Samsung Electronics for Asan, SK hynix for Vietnam and data center server products for Brazil, so results can swing sharply on shifts in a few customers' investment and order plans.

On governance, after a court granted an injunction suspending the effect of the shareholder meeting resolution in July 2025, the company disclosed that it was withdrawing its spin-off plan for a holding company conversion and all related procedures, and subsequently the court issued a decision in lieu of settlement under which minority shareholders withdraw their suit and the company does not execute the split based on the extraordinary meeting resolution. How succession and any governance restructuring are revived remains a variable to monitor.

Risk factors

Cycle and price risk

Revenue and margins are tightly linked to memory prices and customers' production allocation. TrendForce forecast Q3 2026 commodity DRAM price growth of 13-18% and NAND of 10-15%, sharply narrower than 58-63% and 55-60% in the second quarter.

TrendForce also flagged the risk that higher memory prices lift end-product prices, cutting unit sales and ultimately memory demand. Slowing price momentum could show up first in the Brazilian unit, given its wafer purchase and processing model.

Capex recovery and financial risk

Back-end services require continuous capital spending, and if expansions slip or new lines run below expected utilization, payback periods lengthen. The 209.2% debt-to-equity ratio and KRW 1,365.2bn of total liabilities at end-2025 raise sensitivity to interest rate and currency moves.

The company said it has no plan to tap capital markets aside from using facility loans for temporary shortfalls, but if capex doubles as planned the funding mix warrants rechecking. With sizeable overseas operations, local currencies and policy shifts also affect earnings.

Governance and shareholder-return execution risk

During the 2025 spin-off attempt, minority shareholders pushed back, citing the share price decline and suspicions that the aim was succession, and the plan was ultimately withdrawn.

The shareholder-return package then presented, including dividends of at least 30% of free cash flow at the surviving entity and 5% at the new entity plus expanded tax-exempt dividends using capital reserves, assumed the split structure, so return policy under the current structure needs fresh confirmation.

On confirmed financials, dividend payments are small relative to earnings. Any revived restructuring tied to owner-family succession could reintroduce uncertainty.

What to watch next

Late September 2026
Whether the Bac Ninh cleanroom expansion in Vietnam, which the company said would be completed by September (from about 800 pyeong to 2,700 pyeong), is actually finished. It is a leading indicator for growth in system-chip packaging volume.
October-November 2026
The 2027 business plan and capex scale that management said would be set in October-November (a review of roughly double the 2026 level), and whether the internal-cash funding stance is maintained. Funding method directly affects owners' earnings.
Mid-November 2026
The Q3 quarterly report filing. Key items are whether the 20.8% operating margin seen in Q2 2026 holds, and how the Vietnamese capacity additions and Brazilian volumes flow into revenue.
Q4 2026
Updates on commodity DRAM contract prices per DRAMeXchange and TrendForce's quarterly price outlook. The degree of moderation ties into the Brazilian unit's profitability and customers' outsourcing decisions.
March 2027
Confirmed FY2026 results, the dividend decision, and annual general meeting agenda items. With non-execution of the split confirmed through the court's decision after the withdrawal, watch whether any new governance or shareholder-return proposals are tabled.

Overall view

Hana Micron's recent results show revenue and margins improving together. Revenue grew from KRW 894.4bn in 2022 to KRW 1,534.4bn in 2025, and owners' net income swung from losses in 2023-2024 to profit in 2025.

First-half 2026 revenue of KRW 1,190.9bn and operating profit of KRW 214.4bn already far exceeded the full-year 2025 operating profit of KRW 127.7bn, with the Q2 operating margin reaching 20.8%.

Behind this are the Vietnamese unit's pricing structure change and expanded outsourcing of legacy back-end work by its customer, together with revenue growth at the Brazilian unit on rising memory prices.

On the other side sit a 209.2% debt-to-equity ratio, capex under review at roughly double the level for 2027, and a Q3 commodity DRAM price increase projected to moderate from the second quarter.

On governance, the 2025 spin-off was withdrawn and non-execution was settled through a court decision in early 2026, so the shape of any future restructuring and shareholder-return policy bears watching.

What matters from here is whether current margins and utilization hold after the expansion, and how the share of the enlarged profit attributable to controlling shareholders evolves. This report is for information purposes only and contains no buy or sell recommendation.

Sources

Korea Exchange (KRX) — Prices · Market Cap · Volume
FSS electronic disclosure system (DART) — Financial statements · Dividend filings

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Report written 2026-09-05 · Data as of 2026-09-04

This content is AI analysis of market data and web search results, provided for information only. It is not a solicitation or recommendation to invest. Investment decisions and their consequences are the investor's own responsibility. Data may be delayed or contain errors.