Foreigners Net Buy SK Hynix 934 Billion KRW in September... Stock Price Rises 12%

"D-RAM Market Recovery Expectations Are Increasing"

[Asia Economy Reporter Kum Boryeong] The stock most purchased by foreign investors in September was SK Hynix. The stock price rose by about 12% over the course of the month.

According to the Korea Exchange on the 3rd, SK Hynix ranked first among the top stocks by net purchases of foreign investors combining the KOSPI and KOSDAQ markets from the 1st to the 30th of last month. During this period, foreign investors net purchased SK Hynix shares worth 934.1 billion KRW.

It is analyzed that the downward revision of SK Hynix's earnings estimates is coming to an end. Yoo Jong-woo, a researcher at Korea Investment & Securities, said, "SK Hynix's third-quarter sales are expected to slightly exceed the recent market consensus at 7.8 trillion KRW, and operating profit at 1.3 trillion KRW. Due to the impact of COVID-19, memory semiconductor demand and price forecasts have been revised downward from the end of the first quarter to recently, lowering SK Hynix's earnings forecast consensus. Now, as demand and price forecasts rise, earnings forecasts are beginning to be revised upward."

Researcher Yoo added, "Quarterly earnings will worsen until the first quarter of next year, but the stock price has already started to rise reflecting the improved industry outlook. The stock price is showing a pattern of leading the industry and earnings by about six months again." On August 31, SK Hynix's closing price was 75,100 KRW, and on the 29th of last month, it recorded 84,000 KRW. This represents an 11.85% increase in one month. Meanwhile, the KOSPI index rose only 0.07%, from 2,326.17 to 2,327.89 during the same period.

With growing expectations for a recovery in the DRAM market, SK Hynix's stock price is expected to continue its upward trend. Researcher Yoo said, "The recovery in DRAM demand, which started with mobile applications, is expanding to servers. Also, even if the industry shows a recovery in the first half of next year similar to the first half of this year, suppliers' capital investments will not increase simultaneously as they did this year. Due to the DRAM market recovery and improved earnings outlook, SK Hynix's stock price rise is expected to continue."

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