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HANA: Higher Auto Segment Revenue Propels Expansion

HANA: Microelectronics Maker Focused on the Car Industry

Autos & Electrons: The Slow Road to Recovery

CEO, A. Stotz Investment Research

Dr. Andrew Stotz, CFA

Equity Bottom-Up

<ul><li>Share price is less volatile, low core profit valuation, and good price momentum relative to its sector</li><li>Its new factory in Cambodia and the planned capacity expansion at its factory in Thailand (expected to support recovering orders) should boost HANA’s revenue for 2017</li><li>Growing demand from the automotive industry for integrated circuits used in car sensors and LED encourages HANA to expand car segment’s revenue contribution to 30% from current 15% within two years</li><li>More attractive than Thai Info Tech at 17CE* 6.8% ROE/PB versus sector at 5.9% and has a solid net-cash position</li><li>Risks: Continued slowing global mobile and PC/laptop demand</li></ul><p><em>* Consensus estimates</em></p>

Share price is less volatile, low core profit valuation, and good price momentum relative to its sectorIts new factory in Cambodia and the planned capacity expansion at its factory in Thailand (expected to support recovering orders) should boost HANA’s revenue for 2017Growing demand from the automotive industry for integrated circuits used in car sensors and LED encourages HANA to expand car segment’s revenue contribution to 30% from current 15% within two yearsMore attractive than Thai Info Tech at 17CE* 6.8% ROE/PB versus sector at 5.9% and has a solid net-cash positionRisks: Continued slowing global mobile and PC/laptop demand* Consensus estimates

HANA: Higher Auto Segment Revenue Is Driving Expansion

Hana Microelectronics

HANA: Higher Auto Segment Revenue Is Driving Expansion