DS Investment & Securities said on the 9th that SK hynix's operating profit in the first quarter will come in at 39 trillion won. It maintained its "buy (BUY)" rating and raised its target price to 1.3 million won from 970,000 won. The previous trading day's closing price of SK hynix was 1,033,000 won.
Researcher Lee Su-rim at DS Investment & Securities said, "What determines the memory market's real profitability and results is not the spot price but the contract price," adding, "As the uptrend in memory makers' average selling price (ASP) is expected to continue through the fourth quarter this year, the business environment and earnings trajectory remain positive."
Lee projected that DRAM's first-quarter ASP will rise 75% from the previous quarter and NAND's will rise 55%. Lee also expected the ASP uptrend to continue within the year, with DRAM and NAND prices climbing as much as 163% and 138%, respectively.
Accordingly, the first-quarter 2026 operating profit estimate was raised by 104% from the prior forecast to 39 trillion won. The 2026 full-year operating profit was also estimated at 211 trillion won, up 348% from the previous outlook. The full-year operating margin is expected to reach 70%.
There was also an analysis that the recently expanding long-term supply agreements (LTAs) will moderate the pace of future price declines. Lee explained, "Expanding LTAs will limit the speed and magnitude of future memory price declines through quarterly negotiations, setting price floors, and securing volumes via advance payments."
Lee also projected that the supply shortage will persist next year, sustaining the earnings uptrend. Lee said, "Given the industry-wide production capacity (CAPA) outlook, the shortage of commodity DRAM is highly likely to continue through the end of 2027," adding, "Operating profit in 2027 could expand to 282 trillion won."