HANA Micron (067310 KS) For 2016 forecast, look back to 2010

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


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


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


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: 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


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


Consolidated 2015 OP projected at W37.4bn

(57% YoY)

2015 package division sales forecast at

W264.0bn

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1Q11 3Q11 1Q12 3Q12 1Q13 3Q13 1Q14 3Q14 1Q15E 3Q15E 1Q16E 3Q16E

(Wbn)FLIP-CHIP FBGA Other memoryeMCP eMMC Mobile DRAMMCP BOC

5

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


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

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1Q12 3Q12 1Q13 3Q13 1Q14 3Q14 1Q15E 3Q15E 1Q16E 3Q16E

(Wbn)

Sales

Operating margin

6


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


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


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


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) 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


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


Disclosures & disclaimers This research report has been prepared for informational purposes only; it does not constitute an offer or a solicitation of an offer to buy or sell any securities or other financial instruments. The information and data contained in this report have been obtained from sources we consider reliable; however, we make no representation that the information provided in this report is accurate or complete, and it should not be relied on as such. The recipient of this report should use his/her independent judgment regarding the sale or purchase of any securities or financial instruments mentioned herein. We disclaim any liability whatsoever for any direct or consequential loss arising from any use of this report or its contents. This report is for our clients only. It is copyrighted material and may not be reproduced, transmitted, quoted, or distributed in any manner without the prior written consent of Yuanta Securities Korea Co., Ltd.

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.

Analyst certification I/We, as the research analyst/analysts who prepared this research report, do hereby certify that the views expressed in this report accurately reflect my/our personal views about the subject securities discussed in this report.

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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12


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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

HANA Micron (067310 KS) For 2016 forecast, look back to 2010

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