[Click eStock] "SK Hynix Q4 and Next Year Profit Outlook Downgraded... Target Price ↓"

As SK Hynix achieved record-high sales, operating profit, and net profit in the third quarter of 2024, driven by high-bandwidth memory and HBM effects, employees are leaving the SK Hynix headquarters in Icheon, Gyeonggi Province on the 25th. Photo by Kang Jin-hyung

Hanwha Investment & Securities downgraded its earnings forecast for SK Hynix for Q4 this year and 2025 on the 27th. However, it maintained a 'Buy' investment rating and lowered the target price by 4% to 250,000 KRW.

Researcher Kim Kwang-jin of Hanwha Investment & Securities stated, "We slightly revised down the expected operating profit for Q4 this year from 8.1 trillion KRW to 7.9 trillion KRW."

Researcher Kim explained, "We maintain the shipment growth rate forecast at DRAM +7% and NAND +12%, but we lowered the price outlook compared to the previous forecast (from DRAM +8%, NAND -5% to DRAM +5%, NAND -7%). The main reason reflects the worsened demand weakness in traditional markets such as mobile and PC compared to earlier expectations."

The expected operating profit for 2025 was also revised down from 31.7 trillion KRW to 29.1 trillion KRW. However, it is expected that the stock price can be defended thanks to SK Hynix's leading position in high-bandwidth memory (HBM).

Researcher Kim analyzed, "Due to the deepening polarization of demand between the artificial intelligence (AI) market and traditional demand sectors, we assumed a somewhat conservative price outlook. If there is no change in demand next year, price decline pressure on DRAM will increase from Q3 2025, and on NAND from Q1 2025."