[Click eStock] "SK Hynix, Partial Buying Possible When Approaching 100,000 Won"

[Image source=Yonhap News]

[Asia Economy Reporter Hwang Yoon-joo] SangSangin Securities evaluated on the 27th that almost all conceivable negative variables for SK Hynix have already emerged. Accordingly, they maintained the target stock price at 125,000 KRW but upgraded the investment opinion to 'mid-to-long-term stock price increase.'

Researcher Kim Jang-yeol of SangSangin Securities stated, "If SK Hynix's stock price approaches 100,000 KRW, it is possible to make staggered purchases," adding, "Expectations for short-term price increases should be lowered."

Researcher Kim pointed out, "In the second half of the year, semiconductor prices may decline by a high single-digit percentage quarterly," and "In this case, the 2022 operating profit consensus of the high 16 trillion KRW range could be lowered to 15 trillion KRW."

He further noted, "If macroeconomic uncertainties continue to affect the market throughout 2023, operating profit could fall by up to 20% compared to this year."

Researcher Kim analyzed, "A 2023 ROE of about 10% is possible, and considering the enhanced shareholder return policy and the economies of scale from the expanded NAND business, a higher PBR than three years ago is reasonable," adding, "For genuine mid-to-long-term (around one year) investors, it is possible to approach the stock at 100,000 KRW to 106,000 KRW, which corresponds to a PBR level of 0.97 to 1.03 times based on the average BPS of 2022/2023."

He continued, "Depending on the intensity of concerns about a global economic recession (such as U.S. growth below 1%, certain quarters of negative growth in China, and uncertainty about annual 3% growth), temporary drops in the stock price below 100,000 KRW could be an opportunity to increase the intensity of staggered bottom buying."