April 20, 2024

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[THE INVESTOR]  SK hynix’ operating profit in the first quarter will reach 2.4 trillion won (US$2.15 billion), its highest ever, and 2.8 trillion won in the next quarter, said Kiwoom Securities on March 29. 

The securities firm raised the target price to 72,000 won from 68,000 won and maintained a “buy” recommendation. 

The demand has been high while inventory is low, unexpectedly pushing the price of DRAM and NAND above expectations. The inventory will remain low during the off season helping improve earnings in the first quarter, said analyst Park Yu-ak. 

Tight demand and supply will continue, and when the peak season begins in the second quarter the production volume will increase along with price rise, forecast the analyst. “The average selling price of DRAM and NAND will rise 5 percent on-year in the period and the record earnings will continue.”

As the 48-layer 3-D NAND starts being distributed to major clients, its competitiveness will be strengthened, added Park. 

By Hwang You-mee (glamazon@heraldcorp.com)