Memory Semiconductors, When Will the Bottom Come... 'SK Hynix Earnings Outlook'

[Asia Economy Reporter Park So-yeon] There is a forecast that SK Hynix's third-quarter earnings this year will fall short of market expectations.

According to FN Guide on the 17th, Kiwoom Securities recently stated in a report on SK Hynix, "The third-quarter earnings are expected to record sales of 12.3 trillion KRW and operating profit of 2.6 trillion KRW, falling short of the initial expectations."

Park Yoo-ak, a researcher at Kiwoom Securities, said, "Due to a significant slowdown in front-end demand and inventory adjustments by customers, shipments and prices are expected to perform worse than initially anticipated."

Researcher Park mentioned, "In the case of smartphones, the distribution inventory of mid-to-low-end Android products is significantly above the average level, and server ODMs have increased inventory of components including memory semiconductors, so inventory fixation is expected to continue for the time being."

Park added, "The rise in the KRW-USD exchange rate will have a positive effect on operating profit, but it is insufficient to offset the impact of the industry slowdown."

Regarding earnings by business segment, it is expected that DRAM will record sales of 7.8 trillion KRW and operating profit of 2.5 trillion KRW. For NAND, sales of 3.9 trillion KRW and operating profit of 200 billion KRW are forecasted.

For the fourth quarter, sales are expected to be 11 trillion KRW and operating profit 446.9 billion KRW, significantly below market expectations.

Researcher Park said, "The current situation has already been largely reflected in the stock price, and the inventory adjustments by customers, which have the greatest impact on the industry downturn, are likely to peak around the end of this year and early next year. Although it is still early to discuss the bottom of the industry, there is a possibility of a peak out in the first quarter of next year." He added, "Considering the possibility of a relief rally in stock prices at the end of the year and early next year, it is time to gradually start buying at low prices."

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