Shinhan Investment Corp. expected on the 30th that SK hynix would report results exceeding market expectations. It maintained a 'buy' recommendation and raised the target stock price by 18.8% to 380,000 won. The closing price of SK hynix on the previous trading day was 284,000 won.
Shinhan Investment Corp. estimates that SK hynix improved its DRAM profitability further this year in the second quarter by expanding the shipment ratio of fifth-generation high-bandwidth memory (HBM3E) 12-layer products.
Kim Hyung-tae, a researcher at Shinhan Investment Corp., noted that 'bit growth for DRAM has been slightly revised upward, as there was pre-demand.'
He predicted SK hynix's second-quarter revenue to reach 20.93 trillion won and operating profit to 9.2 trillion won. This figure exceeds the consensus estimate (revenue of 20.3 trillion won, operating profit of 8.8 trillion won).
Researcher Kim analyzed that 'HBM will drive DRAM profitability, estimating an annual revenue of 87.94 trillion won and operating profit of 37.97 trillion won this year.'
He also expected that 'supply constraints will continue until the end of the year, leading to a sustained price increase' and that 'the percentage of older models will shrink to the low single digits in the second half.' Researcher Kim estimated the current stock levels for DRAM at 4 to 5 weeks and NAND at 12 to 14 weeks.
Researcher Kim analyzed that 'the leadership in the HBM market will be maintained, and a favorable sales environment compared to competitors is expected to continue until the first half of next year.'