"SK hynix: Buy at the Low"…Target Price Stays at 4.2 Million Won [Click eStocks]

Mirae Asset Securities stated on July 15 that now is an appropriate time to increase holdings in SK hynix at its current low point, maintaining a target price of 4.2 million won and a "Buy" investment rating.

Younggeon Kim, a researcher at Mirae Asset Securities, analyzed in a report released that day, "The recent share price correction appears to have been somewhat sharp, as expectations for second quarter earnings and supply-demand sentiment driven by the listing of American Depositary Receipts (ADR) have been reversed."

External industry conditions also remain strong. TSMC achieved record-high sales and growth rates last month and exceeded its second quarter earnings guidance. Given the significant increase in order backlogs by major tech companies over the past quarter, an expansion in capital expenditures for order fulfillment is expected.

Spot prices for memory chips are also showing strength. For 16-gigabit (Gb) DDR5 and DDR4 chips, spot prices have risen for more than 40 consecutive trading days, with both approaching their previous highs. The continued price strength—at a time when the listing of Changxin Memory Technologies (CXMT) and others could lead to psychological weakening of legacy (general-purpose) spot markets—indicates that supply-demand conditions are particularly tight.

Kim said, "Next year, while conventional memory prices are likely to remain steady overall, High Bandwidth Memory (HBM) will lead price increases," adding, "Annual operating profit is projected to reach 38.9 trillion won, up 45.7% compared to the previous year."

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