Despite a 10% Plunge, Target Price Raised from 2.5 Million to 4.2 Million Won... Why SK hynix's Target Price Was Increased [Click e-Stock]

Earnings Surprise Expected in Q2

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 momentum and strong performance. The investment opinion was maintained as 'Buy'.

In a report published that day, Daol Investment & Securities forecast SK hynix's revenue for the second quarter of this year at 85.5739 trillion won, up 63% quarter-on-quarter, and operating profit at 66.4639 trillion won, up 77%. The company stated, "In the second quarter, DRAM and NAND flash shipment growth rates (B/G) are expected to increase by 9% and 15% quarter-on-quarter, respectively, while blended average selling prices (ASP) are projected to rise by 35% and 50%." This outlook surpasses the market consensus for operating profit, which stands at 62.6401 trillion won.

SK hynix's annual revenue for this year is projected at 375.8694 trillion won, up 287% year-on-year, with operating profit forecast at 294.2437 trillion won, representing a 523.3% increase over the previous year.

The company assessed that the boom in the memory semiconductor sector is expected to continue in the mid-term. Daol Investment & Securities explained that, while some HBM4 plans at client companies are being delayed, the share of HBM3E 12-layer products utilized in 2026 is expanding, and signs of a price rebound due to improving market conditions are being observed.

Daol Investment & Securities added, "Upward revisions to key data points during earnings season and the high possibility of an American Depositary Receipt (ADR) listing in the third quarter are considered events that could extend the rally after earnings season."

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