Trade War – The Shadow Behind the Decline of HANA
There is nothing worse than a spreading of Trade War to Tech War.
There is nothing worse than a spreading of Trade War to Tech War.
17 มิ.ย. 2562

The threat of the U.S. president Donald Trump that has announced to raise tariffs on $300 billion all import goods from China has impacted on HANA Microelectronics Public Company Limited (HANA) which causes trouble to HANA.

However, the war between the U.S. and China seems unfinished and long-lasting with no doubt..!!

Absolutely, the electronic industry all around the world has been interrupting and reconsidering the impact of raising Chinese import tariffs from 10% to 25% by so-called ‘Trade War’.

In the worst case, if the U.S. a 25% tariff last longer than a year, it will extremely damaged and negatively affected to HANA, especially the factory in China which will be resized and moved its production base to Lampoon, Thailand and Cambodia. Moreover, IC factory in Ayutthaya, Thailand will have an extremely negative impact on the production because most of the product is smartphone related. However, if there is a big change of the production base, it might lead to a new ineluctable investment.

As mentioned above, a net profit and dividend of HAHA will significantly decrease.
There is nothing worse than a spreading of Trade War to Tech War which makes HANA’s  important customer, HUAWEI, to recalculate an estimation of the cost after the smartphone’s market trend is not as bright as it used to be. In the first quarter of 2019, the global sales of smartphone decreased by 6.6%.
In the first quarter of 2019, the sale of 4 out of 6 high-end smartphone brands which are Apple, Xiaomi, Samsung, and OPPO sharply dropped 30.2%, 10.2%, 8.1%, and 6% respectively. On the other hand, Huawei and Vivo have increased in sale by 50.30% and 24%, respectively.
Furthermore, the auto-motive industry is also in the same situation which the estimation of the global car sales has shrunk in 2019, while the global sale of personal computer remains certainly decreased.

The revenue of HANA from the three industries that have mentioned above is a 60% of the total revenue, which could post a danger signal to HANA’s fundamental.

This is a sign of revenue loss, isn’t it! 