April 26, 2024

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[THE INVESTOR] SK hynix’s earnings will significantly rise in the second quarter, said NH Investment and Securities on April 25, raising the target price to 205,000 won (US$190.33) from 190,000 won.

Its first-quarter earnings were dented by weak demand from mobile sector that led to slow shipment of DRAM and NAND. Its revenue came in at 8.72 trillion won with operating profit of 4.37 trillion won, slightly lower than market consensus, said analyst Do Hyeon-woo.

In the second quarter, though, shipments will surge as the industry enters a high season, and operating profit will increase 18 percent from the previous quarter to 5.16 trillion won, forecast the analyst. 

Shipments of DRAM and NAND this year will hike 21 percent and 41 percent on-year, respectively, said Do. Price of DRAM will spike 22 percent while that of NAND will slide 9 percent, and operating profit for the whole year will leap 47 percent on-year to 10.12 trillion won, according to the analyst. 

Its current stock price, only 3.9 times its price-earnings ratio, is the most undervalued among global tech firms, he added.

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