[Click eStock] "SK Hynix, Severe Demand Slump... Target Price Down"

On the 15th, IBK Investment & Securities lowered the target price for SK Hynix from 110,000 won to 100,000 won, citing that the semiconductor market downturn is more severe than expected.

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IBK Investment & Securities forecasted that SK Hynix's sales in the first quarter of this year will amount to 5.29 trillion won, a 31.3% decrease compared to the previous quarter. In particular, DRAM sales are expected to decline by a larger margin of 40.6%. NAND sales are projected to decrease by 18.4%.

Both DRAM and NAND prices are falling, and volumes are also decreasing, which is expected to significantly increase the proportion of fixed costs. Accordingly, operating losses in the first quarter of this year are expected to reach 3.23 trillion won, expanding the deficit compared to the fourth quarter of last year.

IBK Investment & Securities stated that while expectations for a semiconductor market rebound this year are high, the outlook remains uncertain. Kim Unho, a researcher at IBK Investment & Securities, said, "There is also a coexistence of expectations that this downturn cycle could end early," but added, "Considering last year's production bit growth (Bit Growth, the increase in memory supply converted into bit units) and shipment bit growth, the situation is judged to be more severe compared to the previous downturn cycle in 2008-2009."

However, the investment opinion on SK Hynix, which is currently trading in the 80,000 won range, remains a "Buy." Researcher Kim said, "Although DRAM demand is expected to be weak, the rate of price decline is anticipated to gradually slow down, and risks related to NAND costs will gradually ease," adding, "Considering that stock prices have always rebounded during periods of supply reduction, the recent price drop is seen as an opportunity for a short-term rebound."

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