[Click eStock] "1Q Korean Memory Semiconductor Companies' Earnings Expected to Exceed Expectations"

Yuanta Securities diagnosed on the 13th that the inventory turnover rate for semiconductors and related equipment increased in March, and that the investment momentum in the entire process is being highlighted.

Researcher Baek Gil-hyun said, "Semiconductor exports in February amounted to $9.9 billion, accounting for 19% of total exports, an increase compared to the same period last year," adding, "Based on export value, the month-over-month (MoM) increase in average selling prices (ASP) of DRAM and NAND was 20% and 34% respectively in January, and the levels for February to March are also expected to be higher than anticipated."

He continued, "It is estimated that the performance of domestic memory semiconductor companies in the first quarter of this year will exceed market consensus," and "The first quarter is expected to be the first quarter in which the inventory turnover rate of domestic memory semiconductors rises, as inventory reduction accelerates and price increases surpass expectations." Along with this, he maintained an 'overweight' opinion on semiconductor sectors including Samsung Electronics and SK Hynix.

Attention was also paid to investment momentum in the entire process. Researcher Baek predicted, "Demand centered on high value-added products including HBM is expected to continue increasing from 2024 to 2025," and "Demand for advanced processes below the 1A node will exceed supply."

He explained, "As the first half of 2024 passes, the recovery in demand will strengthen due to the full-scale launch of new products centered on AI PCs equipped with high-capacity memory semiconductors, and the conventional server market will complete inventory adjustments faster than expected."

He added, "A tight supply and demand situation centered on DRAM is expected to continue in the second half of this year," and "Equipment companies that can benefit from DRAM investment are identified in order of sales proportion as Eugene Technology, Jusung Engineering, APTC, KC Tech, and PSK."

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