April 16, 2024

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[THE INVESTOR] SK hynix will maintain growth momentum as the semiconductor industry continues to thrive, said Shinhan Investment on June 29, raising the target price up 4.2 percent to 125,000 won (US$111.55).

Its revenue in the second quarter will hike 18 percent on-year to 10.29 trillion won and operating profit by 24.8 percent to 5.45 trillion won, beating 5.2 trillion won market expectations. Tech immigration has led to cost improvement and favorable exchange rate will also contribute to advance in revenue, said analyst Choi Do-yeon.

It will continue to rally in the third quarter and revenue will reach 11.3 trillion won with operating profit of 6.11 trillion won. Revenue for the whole year will jump 39.2 percent from last year to 41.9 trillion won and operating profit will come in at 22.1 trillion won, estimated Choi, adding that depending on the exchange rate the figure could go further up. 

Despite the recurring concerns over oversupply of DRAM, there has not been any actual signs. The speed of manufacturers’ investment is slower than expected and increase in supply will continue to follow that of demand, added Choi.

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