"SK hynix, Target Price Raised to 4.2 Million Won... Second-Quarter Earnings Surprise Expected" [Click e-Stock]

On June 24, Daol Investment & Securities raised its target price for SK hynix from 2.5 million won to 4.2 million won, citing continued industry growth and strong performance. The firm maintained its "Buy" investment rating.

In its report released that day, Daol Investment & Securities stated, "We project SK hynix's second-quarter revenue this year to reach 85.5739 trillion won, a 63% increase from the previous quarter, with operating profit expected to rise 77% to 66.4639 trillion won." The firm also forecasted that DRAM and NAND flash shipment growth rates (B/G) in the second quarter would increase by 9% and 15%, respectively, quarter-on-quarter, and that the blended average selling price (ASP) would rise by 35% and 50%, respectively. This outlook surpasses the market consensus for operating profit, which stands at 62.6401 trillion won.

Daol Investment & Securities projected SK hynix's annual revenue for this year to be 375.8694 trillion won, up 287% year-on-year, and operating profit to reach 294.2437 trillion won, a 523.3% increase from the previous year.

The firm also judged that the boom in the memory semiconductor industry will continue in the mid-term. Daol Investment & Securities explained that, while some HBM4 plans at client companies are experiencing delays, the utilization of HBM3E 12-layer products is expected to expand in 2026, and a rebound in prices is being detected due to improving market conditions.

Daol Investment & Securities commented, "Upward revisions to key datapoints during earnings season and the high likelihood of an American Depositary Receipt (ADR) listing in the third quarter are expected to serve as catalysts for extending the rally after the earnings season."

This content was produced with the assistance of AI translation services.