Gross Margin and Operating Margin Trends (2024–2028E)

Hon Precision expanded its GM from 55% in 2024 to 56.5% in 2025, mainly driven by spec upgrade and better product mix from Al and HPC. We expect the continual spec migration trend, structurally longer testing time/procedure from large package size and emerging opportunities (such as CPO) to help lift Hon Precision's margin, which we expect to reach stock option scheme, while it still managed to deliver 132% Y/Y growth. Looking into 2026 and beyond, we expect overall currency policy (see our global team's bears fruit, with a 59% EPS CAGR, 2025-28e. Exhibit 93: Revenue breakdown, by product Source: Company data, Morgan Stanley Resea Source: Company data, Morgan Stanley Research. e = Morgan Stanley Research estimates.