April 27, 2024

• 

[THE INVESTOR] SK hynix will post better-than-expected income going forward, said Mirae Asset Daewoon on June 22, raising the target price to 75,000 won (US$65.76) from 62,000 won.

Its operating profit in the second quarter will rise 23 percent from the previous quarter to 3.04 trillion won, and that for the whole year will leap 259 percent on-year to 11.76 trillion won, estimated analyst Do Hyeon-woo.

The analyst maintained a “trading buy” saying that the possibility of rise in supply in DRAM and NAND markets in the second half should also be considered. 

The acquisition of Toshiba will be positive for the chipmaker, and although it will be difficult for the company to exercise control over Toshiba, there will be opportunities for a partnership, noted the analyst. 

The move will have no major effect on SK hynix but will strengthen its competitiveness in NAND business, which has been a weak point, and will also benefit Korean semiconductor companies, said NH Investment and Securities. 

There is a possibility that the acquisition process will be prolonged due to a lawsuit between Western Digital and Toshiba, but it will lead to short supplies, favorable for it, said analyst Lee Se-cheol.

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