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HANA: 1Q21 core profit missed estimate

  • 1Q21 core profit was 5% below our estimate
  • HANA posted a 1Q21 bottom-line of Bt301m
  • Revenue totaled Bt5.2bn, up 13% YoY but flattish QoQ

We have a SELL call on HANA, due to its expensive valuation and because further YoY earnings falls look to be baked in for 2Q-3Q21. In 2Q-3Q20, orders for PC-related componentry jumped spectacularly, as lockdowns across the globe triggered an unprecedented shift to working-from-home in many countries, which generated an unprecedented surge in demand for computers. There won’t be anything comparable this year. Moreover, the integrated chip shortage is likely to have a dampening effect on HANA’s orderbook (particularly for automotive-related products). And higher transport costs will squeeze its margins.

1Q21 core profit was 5% below our estimate

HANA posted a 1Q21 bottom-line of Bt301m, up 48% YoY but down 57% QoQ. Excluding an FX gain of Bt69m, a loss on derivatives of Bt168m, and a Bt16m impairment marked against financial assets, core earnings would be Bt413m, down by 19% YoY and 7% QoQ. The core number was 5% below our expectation (and 7% short of the street), due to lower sales and heavier SG&A expenses than we had assumed.


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