[THE INVESTOR] SK hynix will have to deal with a DRAM market downturn in the first quarter next year, said Shinhan Investment on Dec. 26 lowering the target price to 84,000 won (US$74.63) from 100,000 won while maintaining a “buy” recommendation.
Continued supply limitations will reduce DRAM stocks followed by a price drop from the second quarter in 2019. Hurt by the price decline of DRAM and NAND, SK hynix’s revenue in the fourth quarter this year will decline 7.8 percent from the previous quarter to 10.53 trillion won and operating profit by 16.1 percent to 5.43 trillion won, said analyst Choi Do-yeon.
Demand for semiconductors next year will be slow in the beginning but will increase over time. Short supply for Intel’s CPU will be resolved in the first quarter and equipment volume will increase in the second quarter in the mobile sector. Capital expenditure will rise again in the third quarter following the completion of optimizing data center, explained the analyst.
By Hwang You-mee (firstname.lastname@example.org)