For years, the business of Hana Microelectronics, the leading EMS provider in the Southeast Asia region, took off as orders divert from, to, or within China. Its business in China is expected to further benefit from China's new self-reliance policy. Seeing the demand from EV, the company also developed a new business in Silicon carbide semiconductors (SiC), which are going to become its next holy grail.
After years of development, Hana has delivered its first prototype of SiC semiconductor system to clients for performance tests. Propelled by the rise of EV, SiC semiconductor is the fastest-growing sector in the power semiconductors industry and can bring in more cash and a higher profit margin once it goes into mass production. Despite the booming sales, the company still needs to face the risks from the persisting shortage of chips and raw materials and exchange rate volatility.
Hana Microelectronics is founded in 1978 in Bangkok, Thailand. It runs a business across Asian countries and the US and has factories in Thailand, China, the US, and Cambodia with a total of more than 10,000 employees.
Besides EMS, Hana also manufactures and sells PCBA, IC, and LCoS. PCBA is its main source of revenue. According to DBS' research report, demand for IC continues to grow due to the rise of electric cars, cloud computing, 5G network, and other industrial and consumer goods. Hana is also raising the production capacity of its IC assembly department to meet the demand.
Hana Microelectronics revenue for the past four quarters (100 million USD) | ||||
1Q21 | 4Q20 | 3Q20 | 2Q20 | |
Revenue | 1.59 | 1.60 | 1.47 | 1.40 |
Gross profit | 0.19 | 0.17 | 0.17 | 0.21 |
Operating profit | 0.08 | 0.17 | 0.11 | 0.22 |
Net profit | 0.09 | 0.21 | 0.10 | 0.21 |
Source: investing.com Compiled by Digitimes July 2021
