[Click e-Stock] "SK Hynix, the Party Isn't Over Yet... Target Price Raised"

Target Price Raised from 280,000 Won to 300,000 Won

On June 18, Daishin Securities raised its target price for SK Hynix from 280,000 won to 300,000 won, citing expectations that the company will maintain its dominance in the high-bandwidth memory (HBM) market. The investment opinion was maintained at 'Buy'.

Ryu Hyungkeun, a researcher at Daishin Securities, stated, "The stock price has surpassed its previous high, and market attention will now focus on the potential for further gains. Once established, leadership in artificial intelligence (AI) products is difficult to overturn, and the company is strengthening collaboration with major clients based on its technological leadership. SK Hynix is expected to secure a leading market share in HBM4 as well. Although initial pricing for HBM4 may be lower than previously expected, the possibility of further price increases remains valid, considering the tight supply-demand environment."

The company's second-quarter results are expected to be solid. Ryu noted, "Despite the weak exchange rate in June, when the proportion of product shipments is high, SK Hynix is expected to post results exceeding the consensus (the average of securities firms' forecasts). The strong DRAM sales are likely to offset the impact of the weak exchange rate, so we have raised our second-quarter operating profit forecast from 8.8 trillion won to 9 trillion won."

The product cycle is also expected to stabilize. Ryu explained, "Strategic shifts among existing suppliers to reduce the risk of Chinese market entry are continuing. By limiting differentiated capital expenditures (CAPEX) to products with strong demand, the company will be able to respond more flexibly to changes in demand."