测试周期上行：行业扩张中持续增长，首次覆盖给予买入评级

amid industry expansion; initiate at BuyAnchoring test upcycle: sustained growth 3,950 TWD| Price:5,000 TWD| PO:BUY:Initiating Coverage 16 March 2026 ,operating leverage. At 36% sales CAGR andand manufacturingdesignsadvancedmoretongmigratietft from chipsend testing demand and content li-driven back-AIongrowthsee fastbusiness should. Itsx range)42-8(vs. itsx 2027E P/E3600 on0PO of NT$5,end test handler supplier, with a-coverage on Hon Precision, a leading backeWe initiat +886 2 2376 3727Merrill Lynch (Taiwan)Research Analyst>>Haas LiuEquity ride on AI upswingunit and content gainsTest handler mike.c.yang@bofa.comMerrill Lynch (Taiwan)Research Analyst>>Mike Yang ASIC customers.inferenceadoption by itslevel test (SLT)-; 3) upside from systemcontrolprecise temperatureforand cold plate(ATC)active thermal controlgains incontent2);cycletestlongerandgrowthdemandcapacity expansion for AI/HPCOSAT1)onCAGR%7+/%26ASP +shipment andbe led byshouldoutgrowthIts.TAMsemis test handlerin a US$13bn logic25)‘(vs. 36% in28‘its share to 47% inlifting,(vs. market +22%)82-25‘35% CAGR fromawill grow ats test handler business’Hon PrecisionWe model cathy.hsu3@bofa.comMerrill Lynch (Taiwan)Research Analyst>>Cathy Hsu utilization should keep its GMs athigh. The favorable mix andend segment-in highentryand limiting the competition from Cohu and Chinas testers’TeradyneAdvantest andcomplemented to,support and flexibility on customization with its modularized solutionsreal time customerposition in FT handler is backed by its track record ins’Hon Precision trajectory at compelling valuationgrowthsRobust earning 1)Risks., in our viewPEG)x1.027 P/E,’26/‘x33x/49speerits(vs.x PEG80.andP/E27’26/‘x29x/38atattractivearessharethe,margins dip and broader market correctionon 4Q25recent pullbacktheFollowing.outlookearningsupgrades should firm up themixequipmentandfrom its OSAT/fabless customersvisibilitystrongs’Hon Precision express written consent of BofA Securities.persons without theor reproduced or quoted in any manner whatsoever in Taiwan by the press or otherThis research report provides general information only. No part of this report may be used under the FINRA rules.US affiliate of BofAS and is not registered/qualified as a research analyst->> Employed by a non responsibility for the information herein in particular jurisdictions.hat takeRefer to "Other Important Disclosures" for information on certain BofA Securities entities t report as only a single factor in making their investment decision.interest that could affect the objectivity of this report. Investors should consider thisreports. As a result, investors should be aware that the firm may have a conflict ofBofA Securities does and seeks to do business with issuers covered in its research .34Objective Basis/Risk on page iQprofileSMHon Precision Company Description Hon Precision is aTaiwan-based semiconductor equipmentsupplier specializing in test handler system for FT and SLTacross a wide range of applications, including AI/HPC,automotive, memory, and consumer electronics. Foundedin 2025, with roots tracing back to Hon Technologyestablished in 1999, the company's core strength lies in its Investment Rationale We have a Buy rating on Hon Precision, in view of its strongtechnology leadership in the semiconductor back-endtesting equipment. It has a solid market position witharound 70% share in FT handler market and close to 50%share in SLT handler market. Longer-term, the company Stock Data Price to Book Value10.8x Focus charts and tables 26 on advanced investment-end capital intensity rising from 2024-Backend sales, capex and capital intensity-Semiconductor back:2Exhibit end is now entering a new phase of expansion-Backend sales, capex and growth trend-Semiconductor back:1Exhibit Global tester market revenue and YoY:3Exhibit We expect logic tester market to further grow to US$13bn in 2028 at a CAGRGlobal logic tester market revenue and YoY:4Exhibit a CAGR of 16%28 at-Overall testing equipment market growth to further accelerate in 2025 28-of 22% from 2025 50% in the next few years-Hon Precision’s market share could grow to 40Global logic test handler TAM and Hon Precision market share:5Exhibit Exhibit9:Test handlersystemrevenue breakdown by businessATC and cold plate componentsarethe key catalysts of content value gain Exhibit8:Hon Precision’s order booking by applicationsAI/HPC/ASIC related orderstogether account for 70~75% of total booking Exhibit10:Hon Precision’s sales and GMs/OpMs trendGMs/OpMs will further expansion to59.6%/52.7% in 2027 Exhibit11:Hon Precision’s 1-year forward P/EHon Precision’s P/E is between 8-42xfrom 1-year forward perspective AI testing enabler with solid marketposition and technological strength Hon Precision is a Taiwan-based semiconductor back-end equipment supplier, mainlyoffering test handler for FT (final test) and SLT (system level test). Not merely atraditionalsemiconductortestinghandler manufacturer, the company offe