"This Is Not the Time to Sell in Fear"... Securities Firms Urge to Buy SK hynix Despite Sharp Target Price Cut Amid Plunging Market [Click e-Stock]

Mirae Asset Securities announced on July 30 that it has lowered its target price for SK hynix by 33%, from 4.2 million won to 2.8 million won, reflecting the possibility of a decline in NAND flash contract prices and the issue of domestic production of lithography equipment in China. The investment opinion remains 'Buy'.

Kim Young-geon, an analyst at Mirae Asset Securities, stated in the report published on this day, "We only lowered the target multiple, judging that the impact of the China issue on earnings estimates through 2028 will be limited," and explained, "We applied a target price-to-book (P/B) ratio of 4.6 times, reflecting the overall decline in industry stock prices."

Analyst Kim added, "The spot price of DRAM (16Gb) has been rising for more than 50 consecutive trading days, surpassing previous highs, indicating a continued tight supply-demand situation. While the rise in average selling prices (ASP) for memory is expected to moderate next year, the higher return on equity (ROE) will support higher valuation multiples than in the past."

Strong financial standing and capacity for shareholder returns were also cited as positive factors. Kim projected, "The cumulative three-year free cash flow (FCF) through 2027 is estimated at 440 trillion won," and added, "Net cash is estimated at around 420 trillion won, following the recent issuance of American Depositary Receipts (ADR) and the recovery of investments from Kioxia. Considering earnings strength and financial stability, the recent share price decline seems excessive."

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