DAISHIN SECURITIES noted on the 18th that despite the weak exchange rate this month, which has a high product shipment ratio for SK hynix, the performance is expected to exceed market expectations. They maintained a 'buy' investment recommendation and raised the target price from 280,000 won to 300,000 won. The closing price of SK hynix on the previous trading day was 249,000 won.
Ryu Hyung-geun, a researcher at DAISHIN SECURITIES, said, "The strong sales effect of DRAM (expected to grow by 21% compared to the previous quarter) is expected to offset the impact of the weak exchange rate," and raised the second quarter operating profit forecast from 8.8 trillion won to 9 trillion won.
With the stock price of SK hynix breaking past the previous high, market attention is focused on the possibility of further gains. DAISHIN SECURITIES believes that once the leadership in artificial intelligence (AI) products is taken, it will not easily be overturned, and that SK hynix is strengthening collaboration with key business partners based on its technology leadership.
Researcher Ryu said, "SK hynix will secure a leading share in HBM4 as well," adding, "Initial prices may form lower than market expectations, but considering the tight supply-demand environment, the potential for further increases remains valid."
The stabilization of the commodity cycle was also evaluated positively.
Researcher Ryu noted, "The strategic shift of existing suppliers to reduce the entry risks from China is ongoing," and added, "This strategy aims to maintain the gap through product and production integration and will flexibly respond to changes in demand through differentiated capital expenditure (Capex) limited to products with strong demand."