"Is '2 Million Hynix' Really Possible? Brokers Raise Target Price for SK hynix [Click eStock]"

Ahead of SK hynix's quarterly earnings announcement, securities firms are raising their target prices for the stock. This trend is fueled not only by expectations of strong first-quarter results, but also by heightened optimism that the company’s growth will accelerate even further from the second quarter onwards. The prospect of expanded shareholder returns is also cited as a key driver for future share price gains.

According to the securities industry on April 21, LS Securities announced in a report the previous day that it was raising its target price for SK hynix from 1.45 million won to 1.5 million won, implying approximately 30% upside from current levels. Similarly, Meritz Securities increased its target price for SK hynix to 1.7 million won last week. IBK Investment & Securities raised its target from 1.1 million won to 1.8 million won, a 63.6% jump. KB Securities set its target at 1.9 million won, while SK Securities suggested 2 million won as its target price.

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More than 10 major securities firms have raised their target prices for SK hynix this month alone. Above all, expectations for robust earnings have played a significant role in these upward revisions. The securities industry anticipates that SK hynix’s first-quarter operating profit, which will be released on April 23, will reach between 35 trillion and 40 trillion won.

Kim Dongwon, Head of Research at KB Securities, stated, “A first-quarter operating profit of 40 trillion won is expected, surpassing consensus and marking an earnings surprise.” Kim Woonho, a researcher at IBK Investment & Securities, provided a first-quarter operating profit estimate of 38.46 trillion won—double the previous quarter—and described it as “an all-time high.” Sunwoo Kim, an analyst at Meritz Securities, also forecasted “a record performance of 37.5 trillion won, up 95% from the previous quarter.”

There is also strong optimism that SK hynix’s earnings will show even greater growth from the second quarter onward. Despite geopolitical risks stemming from the Middle East, strong growth momentum is expected to continue, as second-quarter shipments of artificial intelligence (AI) servers are projected to exceed initial expectations.

Kim, the research head, predicted, “Quarterly earnings are expected to bottom out in the first quarter and enter an accelerating growth phase through the fourth quarter.” KB Securities estimates that SK hynix’s second-quarter operating profit will reach 60 trillion won (with an operating profit margin of 78%), a 552% increase year-on-year.

Sunwoo Kim, the analyst, commented, “Amid an even more acute memory supply shortage, SK hynix is expected to deliver the strongest sequential improvement in the upcoming quarter.” He further anticipated “a series of share price catalysts within the second quarter.” Specifically, he pointed to a base effect and a robust pricing strategy that will result in DRAM and NAND price increases above industry averages, the concretization of plans for issuing American Depositary Receipts (ADRs), and a renewed confirmation of the company’s commitment to shareholder returns at the general shareholders’ meeting—an aspect previously underemphasized.

Woosung Jung, a researcher at LS Securities, noted, “In terms of share price, expectations for SK hynix’s 2027 HBM profit growth could be reflected early, ahead of the key supply event of ADR listing.” He also highlighted that “the focal point of shareholder return policy is to use 50% of the expected free cash flow (FCF) in 2026 as a resource for shareholder returns and to secure 100 trillion won in net cash.” He added that “a significant portion of the 2026 resources is expected to be allocated to share buybacks and cancellations in conjunction with the ADR listing.”

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