[Click e-Stock] "SK Hynix Target Price Raised to 1.45 Million Won... Strong Profitability"

On the 23rd, Daishin Securities raised its target price for SK Hynix to 1.45 million won, saying the company is expected to show the strongest profitability since its foundation. It maintained its investment rating of "Buy."

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Daishin Securities researchers Ryu Hyeonggeun and Seo Jiwon stated in a report that day, "Reflecting the upward revision to this year's price outlook, we are raising our operating profit forecast from 14.2 trillion won to 17.4 trillion won."

For general-purpose semiconductors, the price increase is expected to widen amid a surge in real demand centered on servers and limited production growth. Although there are concerns about weak set shipments due to memory semiconductor inflation, the price strength is expected to continue, given the extreme gap between supply and demand. For high bandwidth memory (HBM), it is judged that the possibility of SK Hynix, which has stable supply capabilities, being excluded from the supply chain is slim.

Researcher Ryu said, "The company is continuing its efforts to shift from a quarterly spot price negotiation structure to a long-term annual contract structure, and if the change in contract structure becomes a reality, long-term supply-demand stability will be further strengthened," adding, "Attempts to issue American Depositary Receipts (ADRs) through methods such as share buybacks and new share issuance are expected to become more concrete."

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