SK hynix Q2 Earnings Outlook Bright; Kiwoom Securities Raises Target Price

Analysis suggests that SK hynix's second-quarter operating profit will exceed market expectations. On the 11th, Kiwoom Securities predicted that SK hynix would achieve an operating profit of 70 trillion won in the second quarter, bolstered by rising semiconductor prices. This figure surpasses the average forecast of 60.6 trillion won by market experts. Consequently, SK hynix's target stock price has been adjusted to 1.9 million won.

General-purpose DRAM prices rose 53% quarter-on-quarter, and NAND prices increased by 75%, both exceeding market expectations. Mobile DRAM prices surged 76% quarter-on-quarter due to a reduction in supply. Prices for NAND module products such as eMMC, UFS, and SSD saw increases of 70-80%.

SK hynix's second-quarter revenue is estimated at 87.3 trillion won, a 66% increase from the previous quarter. Operating profit from DRAM is projected at 52.8 trillion won (up 69% quarter-on-quarter), and operating profit from NAND is estimated at 17.2 trillion won (up 171% quarter-on-quarter). Kiwoom Securities attributed the significant improvement in performance to SK hynix's strategy of converting some HBM lines to LPDDR5 and expanding the proportion of commodity memory sales.

The third-quarter operating profit is forecast at 75.2 trillion won, with an expectation of a slowdown in memory price increases.