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SK hynix Cheongju Plant Entrance. (Photo: SK hynix) |
[Alpha Biz= Kim Sangjin] DB Financial Investment has forecasted growth in SK hynix's performance this year, driven by the recovery of general server demand and the full-scale product shipments from AI semiconductor customers in the second half of the year. The investment rating remains "Buy" with a target price of 260,000 KRW.
In its analysis today, DB Financial Investment stated, "SK hynix’s operating profit for Q4 last year was 8.1 trillion KRW (up 15% quarter-on-quarter, up 2236% year-on-year), in line with market expectations. DRAM (dynamic random-access memory) showed stable shipment volume and strong price increases, supported by AI demand, despite weak B2C (business-to-consumer) demand and increased DDR4 and LPDDR4 supply from China’s Changxin Memory (CXMT)."
However, the report noted, "Meanwhile, NAND (flash memory) shipments were below guidance (-5%) and prices declined quarter-on-quarter (-5%), as the inventory adjustments by PC and mobile customers offset the expanded enterprise SSD (eSSD) sales."
For Q1 of this year, DB Financial Investment predicts SK hynix’s operating profit will be 5.8 trillion KRW (-28%, +102%). Analyst Seo added, "Despite the sales strategy focusing on high-value products, seasonal off-peak conditions and continued weak B2C demand are expected to lead to declines in DRAM and NAND shipments and prices. In particular, NAND is expected to turn to a quarterly loss."
The annual operating profit forecast has been revised downward from 38 trillion KRW to 30 trillion KRW.
AlphaBIZ Kim SangJin(letyou@alphabiz.co.kr)
