Palmitoyl acyltransferase that catalyzes N-terminal palmitoylation of SHH; which is required for SHH signaling (PubMed:18534984, PubMed:31875564, PubMed:24784881). It also catalyzes N-terminal palmitoylation of DHH (PubMed:24784881). Promotes the transfer of palmitoyl-CoA from the cytoplasmic to the luminal side of the endoplasmic reticulum membrane, where SHH palmitoylation occurs (PubMed:31875564). It is an essential factor for proper embryonic development and testicular organogenesis (PubMed:24784881). hexadecanoyl-CoA + N-terminal L-cysteinyl-[protein] = CoA + H(+) + N-terminal N-hexadecanoyl-L-cysteinyl-[protein] hexadecanoyl-CoA + N-terminal L-cysteinyl-[protein]-C-terminal glycyl cholesterol ester = CoA + H(+) + N-terminal N-hexadecanoyl-L-cysteinyl-[protein]-C-terminal glycyl cholesterol ester Inhibited by NaCl concentrations above 150 mM. Optimum pH is 6.5. Co-localizes with SHH in the ER and Golgi membrane. Widely expressed. Expressed in fetal ovary and testis, with high levels of expression observed in Sertoli cells (PubMed:24784881). The disease is caused by variants affecting the gene represented in this entry. Belongs to the membrane-bound acyltransferase family. HHAT subfamily.