SK Hynix. (Photo=SK Hynix)

 

[Alpha Biz= Reporter Kim Minyoung] Hana Securities raised its target price for SK hynix from 240,000 won to 280,000 won on July 11th, citing a market capitalization of 200 trillion won. The investment rating remains 'buy'.

According to Hana Securities, "Although the stock has seen a significant increase since the beginning of the year, its differentiation in business performance, particularly in leading high-bandwidth memory (HBM), sets it apart from others in the industry. It continues to be recommended as the most preferred stock within its sector."

Hana Securities also emphasized, "Tight supply conditions are expected to continue in the second half of the year. With the full-scale production of HBM3E (5th generation) 8-stack and the commencement of 12-stack supply, there remains a possibility of price increases in DRAM. In conclusion, there is room for upward adjustments in estimated figures."

For the second quarter of this year, SK hynix forecasted sales of 16.85 trillion won, a 131% increase from the same period last year, and operating profit of 5.62 trillion won, marking a turnaround to profitability. Analysts expect better-than-expected performance due to sustained tight supply in both DRAM and NAND markets.

Kim, a researcher at Hana Securities, commented, "DRAM shipments are expected to surpass competitors due to the previous quarter's base and the start of HBM3E 8-stack production. This, coupled with tighter supply in NAND, contributes to a favorable business outlook."

In line with these positive prospects, SK hynix adjusted its performance expectations for this year and next. Kim stated, "We have raised this year's operating profit from the previous 23.3 trillion won to 26.2 trillion won, and next year's from 39 trillion won to 43.3 trillion won. Assumptions include similar shipment levels to previous forecasts, with adjustments made for price and exchange rate expectations."

The volatility in NAND price increases and the exchange rate adjustment from 1,311 won to 1,351 won for next year were noted as contributing factors in their analysis.

 

 

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