HanaMicronInc: Earnings Rebound and Sharp Share Price Rise Lift Multiples Despite Heavy Borrowings

Thesis

The data supports an earnings recovery. Trailing twelve-month (TTM) operating income through H1 2026 is ₩300.1B, versus ₩127.7B in 2025 and ₩106.8B in 2024. Operating margin is 14.5%, up from 8.3% in 2025 and close to the 15.6% of 2021. Net income of ₩171.2B compares with ₩38.1B in 2025 after losses in 2023 and 2024.

The share price has moved fast: +41.0% in one month, +27.0% in three months and +99.2% in one year. It sits at ₩48,500 against a 52-week range of ₩22,400 to ₩58,500, so it is about 17.1% below the high. The data does not show whether the recovery will last, and no guidance or news headlines are available. Investor flow, foreign ownership and short balance data are also not available.

Business overview

HanaMicronInc is a semiconductor-sector company listed on KOSDAQ since 2005-10-11 and founded on 2001-08-23. The CEO is listed as 이동철. It has 66,271,949 listed shares and a market cap of about ₩3.2T. Enterprise value is about ₩3.9T.

Revenue has grown from ₩669.5B in 2021 to ₩1.53T in 2025, with growth of 33.6% in 2022, 8.2% in 2023, 29.2% in 2024 and 22.7% in 2025. TTM revenue through H1 2026 is ₩2.07T. Profits have been much less steady than sales.

Financial analysis

All figures come from filed financial statements (DART). TTM revenue to H1 2026 is ₩2.07T, operating income ₩300.1B and net income ₩171.2B. This gives an operating margin of 14.5% and a net margin of 8.3%. ROE is 37.0%, versus 9.9% in 2025 and negative in 2023 and 2024 (-4.7% and -7.0%).

Annual operating margin was 15.6% in 2021, 11.6% in 2022, 6.0% in 2023, 8.5% in 2024 and 8.3% in 2025. Net income was ₩22.8B in 2021, ₩2.8B in 2022, -₩13.5B in 2023, -₩23.8B in 2024 and ₩38.1B in 2025.

On the balance sheet, cash is ₩213.1B against borrowings of ₩924.2B, so net borrowings are about ₩711.0B. Liabilities-to-equity is 194.4%. Free cash flow over the TTM is positive at ₩109.7B.

Valuation

The current P/E is 18.8, P/B is 5.8 and P/S is 1.6. The dividend yield is 0.3%. EV/EBITDA is not available. Year-end 2025 multiples were a P/E of 44.8 and P/B of 4.3, so the P/E has fallen as earnings rose while P/B has risen. Earlier year-end multiples are not available.

Among the peers given, SK hynix shows P/E 7.2 and P/B 4.5, DB HiTek P/E 16.9 and P/B 2.4, and Jeju Semiconductor P/E 12.1 and P/B 6.2. Fadu has P/B 59.6 and no P/E. Shinsung E&G has no multiples available. HanaMicronInc's P/E is above the peers with a P/E, and its P/B is above all except Jeju Semiconductor and Fadu. The high ROE partly explains the high P/B, but that ROE is based on a recently recovered profit.

Catalysts

• The half-year report for June 2026, filed 2026-08-14, showed the TTM profit recovery that now drives the multiples.
• An exchangeable bond issue decision was filed on 2026-08-05, which may affect funding and the share count; terms are not in the data.
• Two 5%+ holding reports were filed on 2026-09-30 and 2026-10-07, indicating changes in large shareholdings; details are not available.
• Investor relations events on 2026-08-25 and 2026-09-01 show active communication with the market.
• Several insider shareholding reports between June and August 2026 are on file, though their direction is not given.

Risks

• Borrowings of ₩924.2B and liabilities-to-equity of 194.4% leave the balance sheet leveraged.
• Earnings have been volatile, with net losses in 2023 and 2024 and a net margin of just 8.3% even in the recovery.
• The share price is up 99.2% in a year and 41.0% in a month, so a sharp move in either direction is possible.
• The P/B of 5.8 and P/E of 18.8 are above most listed peers, leaving less room if profits disappoint.
• Investor flows, foreign ownership, short interest and news headlines are not available, so sentiment cannot be assessed.

Closing view

The filed numbers show a clear improvement in revenue, margins and returns, and free cash flow is positive. The market has priced this in, with a doubling in one year and multiples above most peers shown. Against that, leverage is high, profits have swung between loss and gain in recent years, and the exchangeable bond adds a funding element whose terms are not in the data. Whether the TTM level of profit is sustainable is the key open question the data cannot answer.

Model estimate of fair value

The valuation model has no estimate for this company yet (not enough data, or no positive value with the base case).

Report history

1. Oct 13, 2026InitiationHanaMicronInc: Earnings Rebound and Sharp Share Price Rise Lift Multiples Despite Heavy Borrowings