[Click eStock] "SK Hynix, HBM Proportion to Increase Further Next Year... Target Price Down"

Daishin Securities forecasted on the 29th that the proportion of high-bandwidth memory (HBM) in SK Hynix's performance will further increase next year. The investment opinion 'Buy' was maintained, but the target stock price was lowered from the previous 265,000 KRW to 240,000 KRW.

Shin Seok-hwan, a researcher at Daishin Securities, estimated, "The operating profit for DRAM in the 4th quarter is expected to be 6.6 trillion KRW, and the operating profit for NAND is estimated at 1.3 trillion KRW," adding, "Next year's operating profit is expected to increase by 46% year-on-year to 34.2 trillion KRW. As the supply of Nvidia B200 and B300 ramps up, the proportion of HBM will further increase."

Regarding the recent value-up disclosure announced by SK Hynix, he said, "They decided to increase the annual fixed dividend by 25%, use 5% of the free cash flow (FCF) paid so far to strengthen financial soundness, and provide additional dividends within 50% of the cumulative three-year FCF upon achieving the financial soundness target by the end of 2027," analyzing, "They announced plans for value-up, securing financial soundness, and stable profit generation. This will be a positive change for the company's growth in the mid to long term."

However, regarding the downward revision of the target stock price, he explained, "Due to increased uncertainty in the improvement of smartphone and PC demand and inventory adjustments in memory semiconductors, memory semiconductor prices are expected to decline until the first half of next year, leading to a slight downward revision of next year's performance estimates."