[Featured Stocks] Samsung Electronics and SK Hynix Decline Amid Target Price Downgrades

Samsung Electronics and SK Hynix are experiencing a decline from the early trading hours due to concerns over inventory burdens.

As of 9:28 AM on the 14th, Samsung Electronics is trading at 59,300 KRW, down 1.17% (700 KRW) from the previous day. SK Hynix is also down 3.08% (2,600 KRW), trading at 81,700 KRW.

In the securities market, domestic memory semiconductor companies' inventory burdens remain high, leading to successive downward revisions of target prices. The foreign securities firm CLSA Securities lowered Samsung Electronics' target price from 76,000 KRW to 73,000 KRW, and SK Hynix's target price from 112,000 KRW to 108,000 KRW.

CLSA Securities stated, "The first-quarter shipments from memory suppliers have been confirmed to be lower than expected," adding, "Although customer inventories have decreased, they remain at high levels, and the slow pace of inventory depletion is exerting additional pressure on ASP (average selling price)."

Eugene Investment & Securities forecasted that Samsung Electronics' first-quarter performance will fall short of expectations. Samsung Electronics' first-quarter revenue is expected to decrease by 16% year-on-year to 65.5 trillion KRW, and operating profit is projected to drop by 94% to 800 billion KRW.