[Click eStock] "SK Hynix Expected to Slightly Miss Q3 Earnings Estimates"

"Judged as a Stock Oversold Situation"

[Image source=Yonhap News]

DS Investment & Securities forecasted on the 24th that SK Hynix's third-quarter earnings will slightly miss market consensus. The investment rating was maintained at 'Buy' with a target price of 290,000 KRW.

Researcher Lee Surim of DS Investment & Securities stated, "SK Hynix's third-quarter revenue is expected to surge 96% year-on-year to 17.8 trillion KRW, and operating profit is projected to turn positive at 6.5 trillion KRW," adding, "This will slightly underperform the market consensus of 6.9 trillion KRW."

Lee predicted that despite weak legacy demand, HBM performance will remain solid. He diagnosed, "Since the end of July, the market has continued concerns over economic recession and AI monetization, reflecting worries about reduced big tech capital expenditures (CAPEX), HBM oversupply, and weak demand for general-purpose DRAM in stock prices; however, no signals of HBM oversupply have been detected."

He further assessed, "With the effect of new product launches in 2025 reflecting price premiums, HBM prices are expected to remain robust," and added, "The weak demand for general-purpose DRAM is unlikely to be prolonged."

He continued, "Even considering the downward revision of operating profit estimates for 2025, the current stock price is oversold at about 1.3 times based on the next 12 months (12M Fwd)," and projected SK Hynix's operating profit at 23 trillion KRW in 2024 and 35 trillion KRW in 2025.