Kiwoom Securities projected that SK Hynix will announce shock This fall efficiency outcomes, gaining a bonus within the reminiscence value upturn cycle led by excessive bandwidth reminiscence (HBM). The agency additionally forecasted that SK Hynix will generate working income near 18 trillion received in Q1 subsequent 12 months amid rising costs and rising demand.
Kiwoom Securities launched an evaluation report on SK Hynix on Dec. 8, sustaining its goal inventory value on the present 730,000 received. Park Yu-ak, a Kiwoom Securities researcher, recognized that “the HBM-centered reminiscence value upturn cycle is showing stronger than anticipated” and evaluated that “SK Hynix will file working income of 16.2 trillion received in This fall this 12 months, exceeding market expectations (14.6 trillion received based mostly on FnGuide).” Working income by enterprise division are anticipated to indicate 15.3 trillion received from DRAM and 900 billion received from NAND, representing will increase of 39% and 170% respectively in comparison with the earlier quarter.
Relating to SK Hynix’s outlook for Q1 subsequent 12 months, Park additionally acknowledged that “gross sales will attain 31.5 trillion received and working income 17.9 trillion received, once more exceeding market expectations (gross sales 30.4 trillion received, working income 16.3 trillion received)” and projected that “general-purpose DRAM costs will rise 22% in comparison with the earlier quarter and NAND costs may even enhance 5%, resulting in additional enchancment in profitability.”
The current acceleration in NAND value will increase was additionally cited as a optimistic issue. Park analyzed that “the potential for NAND transaction costs exceeding our expectations is rising” and “whereas value will increase resulting from new M15X gear operation are a priority, the magnitude of product value will increase will sufficiently offset this.” Accordingly, working income for Q1 subsequent 12 months are estimated to extend 11% every in comparison with the earlier quarter, with DRAM at 17 trillion received and NAND at 1 trillion received.
Key background elements for the trade enchancment included lowered general-purpose DRAM distribution stock, DDR5 provide changes, and restoration in server DRAM demand. Researcher Park defined that “the depth of the preliminary value upturn cycle is exceeding expectations, and this heat can also be spreading to NAND.”
The potential of extra reminiscence value will increase was additionally raised. Researcher Park acknowledged that “main set producers are absorbing reminiscence value burdens via product value will increase, elevating the potential for extra reminiscence value will increase.” He continued, “Whereas there’s a risk that short-term value will increase may result in decreased set demand, reminiscence value forecast upgrades and efficiency expectation enhancements will present upward momentum for SK Hynix inventory costs in the meanwhile.”
