[Click eStock] SK Hynix, Expected Benefits from Intel NAND Acquisition Next Year

[Asia Economy Reporter Junho Hwang] Cape Investment & Securities raised the target price of SK Hynix to 160,000 won on the 24th.

The securities firm projected SK Hynix's Q4 sales this year to increase by 7.1% from the previous quarter to 12.6 trillion won, and operating profit to expand by 3.4% to 4.3 trillion won. By business segment, DRAM is expected to rise by 8.5%, and NAND flash by 16.0%.

In particular, the component shortage, which was the biggest risk factor in Q3 this year, appeared to have partially improved. Furthermore, positive outlooks on the semiconductor market from Micron's conference call in the US and guidance improvements for Q2 next year were cited as grounds for the earnings improvement forecast.

Additionally, with the approval of the Chinese government, the last among various governments' approvals for SK Hynix's acquisition of Intel's NAND flash business has been primarily completed, so it is expected to be recognized as consolidated sales starting next year.

Seongsun Park, a researcher at Cape Securities, stated, "Although the Intel business unit's performance has not yet been reflected, the stock price is already rising as it reflects expectations for market improvement by changing the applied PBR to next year," and added, "We expect positive signals such as improvement in component supply shortages in future semiconductor companies' earnings announcements."

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