[EQUITIES] ‘SK hynix to outperform in Q2’
[THE INVESTOR] SK hynix will post an earnings surprise in the second quarter, said Hanwha Investment and Securities on July 10, maintaining a “buy” recommendation and 120,000 won (US$108.04) target price.
Its revenue in the period will reach 10.2 trillion won with operating profit of 5.5 trillion won, beating market expectations, as shipment of DRAM and NAND will show double-digit growth and product prices will remain relatively solid. Demand for server DRAMs remains strong while demand from China’s mobile industry is improving from a temporary dip, said analyst Lee Sun-hak.
Its revenue in the third quarter will rise to 11.1 trillion won with operating profit of 6 trillion won. There are concerns over possible product price decline in the latter half but demand is increasing especially in the B2B sector and the decline will be limited. As the company will begin to supply NAND products for enterprise solid-state drives in earnest from the second half, its product mix will improve, he added.
By Hwang You-mee (firstname.lastname@example.org)