HANA comes with risks linked to the global economic slowdown, supply chain issues, and geopolitical tensions. The potential peak cycle and limited upward earnings revision breadth may create downside risks into 2H22-23. We recommend a wait-and-see stance for now.
Weak smartphone demand
For electronic components firms, we need to watch the sales trends for end-product markets, such as PCs, cloud products, smartphones, and automobiles. According to HANA’s 2Q22 results, the biggest chunk of its revenue came from telecom (29%), followed by auto (18%), industrial (16%), opto (10%), RFID (9%), consumer (9%), computer (7%), and medical (2%).