Hermes Microvision sees strong growth
Michael Kors On Sale Semiconductor Equipment Manufacturer Hermes Microvision Inc. (HMI 汉 微 科) recorded strong growth in net profit in the last quarter with earnings per share reached a record in the history of the company.
Net profit rose 37.76 percent year on year and 4.91 percent quarter-on-quarter NT $ 557.62 million ($ 18.51 million) in the second quarter, with earnings per share of NT $ 8.44, said the company in an archive of the Taiwan Stock Exchange on Wednesday.
"We remain optimistic about the company's performance to grow this year and we expect the result of 49.9 percent last year to NT $ 34.45 per share and still grow 41 percent to NT $ 48.89 per share in next year, "Yuanta Investment Consulting Co (元 大 投 顾) analyst Felix Hsu (徐 凰 原) said in a note yesterday.
Hermes Microvision shares closed 0.65 percent higher at NT $ 936 yesterday on the over-the-counter market.
Hsu has its "buy" held at the value, with a target price of NT $ 1,000.
"The company is one of the few semiconductor companies that can provide a strong growth in the coming years available," he said.
Hermes Microvision has a share of more than 85 percent of the global market of e-beam inspection systems (EBI), especially in the control of the wafer used.
Wafer inspection is mainly determined by optical surface scan to identify the physical defects and to meet limits on 28 nanometer (nm) can be performed, but can EBI significantly improve the resolution of 3 nm and is capable of detecting defects voltage unlike, say analysts.
"The leadership of the HMI market is indisputable," Michael Liu (刘明龙) and William Kuo (郭德 齐), analysts KGI Securities Investment Advisory Co (凯基 投 顾), said in a separate note. "It's one of the biggest beneficiaries of the sustained migration of semiconductor technology companies with the most advanced methods, such as process or 22/20nm 14nm FinFET [end of the field effect transistor] process."
In the first half of the year, the net profit of Hermes Microvision 60.15 percent to NT $ 1.1 billion and earnings per share of NT $ 16.47, NT $ 680 million, or NT $ 11.05 per share same period last year. Cumulative sales were expanded 25.33 percent to NT $ 2,500,000,000 NT $ 1.99 billion last year, company data showed.
The gross margin was 70.38 percent and operating margin was 44.79 percent in the first half, compared to 70.49 percent and 38.92 percent a year earlier are.
Despite market concerns regarding adjustments cyclical stocks in the semiconductor industry and weakening global demand for PCs, the company expects flat or moderate growth in profits and margins in quarter last quarter due to improved product mix and price stability, KGI said.
But regular orders senior semiconductor companies and new jobs of second-tier companies, the company's business remain strong next year, said the brokerage.
KGI has maintained the rating of "add" on the Hermes Microvision shares with a target price of NT $ 1.100.
In addition, Hermes Microvision said Wednesday that it plans to between 4 and 5 million new shares in the form of global depository receipts to make to strengthen its working capital.
The company said that its board had approved a plan for fundraising, but not set a subscription price of new shares or a period for the capital. The company may raise as much as NT $ 4680000000, after the close of yesterday's share price of NT $ 936 mk bags outlet 5/9 --