SK hynix, is now the opportunity to buy at the bottom? Is there anything left to climb
The current stock price of SK Hynix is at the lowest level, and analysts say that now is an opportunity to buy the low.
As of 2:50 pm on April 25, SK Hynix’s stock price was 108,000 won, down 2.26% from the previous trading day. The stock price, which had risen to 136,000 won during the day in February, and recorded a 52-week high, has fallen by nearly 20% in about two months.
Kiwoom Securities analyzed that the current stock price of SK Hynix is at its lowest point. Park Yu-ak, an analyst at Kiwoom Securities, said, “The current share price of SK Hynix has plummeted due to growing global economic anxiety, and is nearing its lowest point in the short term. The fixed price is expected to rise, and for NAND flash, a large price increase is occurring due to supply chain disruptions.” DRAM and NAND flash are semiconductor memory devices, and SK Hynix is the main business area.
According to analyst Park’s explanation, DRAM is expected to record good shipments considering the recovery in demand for servers (computer programs or devices) witnessed from the second half of the first quarter of this year. It is analyzed that an increase in prices due to an increase in supply will drive earnings. In addition, the NAND flash business is expected to benefit from production disruptions of Japanese semiconductor company Kioxia and US hard disk company Western Digital (WD), which focus on this. It is analyzed that a strong shipment growth rate and stable price flow will be seen as demand for SK Hynix is relatively concentrated as global major companies are currently experiencing production disruptions.
Accordingly, analyst Park said, “This year, SK Hynix’s first quarter sales and operating profit of 11.9 trillion won and operating profit are expected to exceed the market estimates with 14.3 trillion won in sales and 4.2 trillion won in operating profit in the second quarter.” predicted that In particular, it is predicted that sales and operating profit will increase by 20% and 32% QoQ, respectively, in 2Q, when earnings are expected to rise in earnest. Analyst Park predicted, “In the NAND flash business, the operating loss of 195.5 billion won in the first quarter of this year will be 624.6 billion won in the second quarter, and it will succeed in turning to black.”
Analyst Park also emphasized, “It is necessary to remember that growing global economic uncertainty has always been a good buying opportunity for SK Hynix.” The current stock price has reached its lowest point, and now is an opportunity to buy a low. “According to the forecast of the DRAM and NAND flash divisions, which are expected to show an upward trend in the future, the memory semiconductor market will become a ‘sellers market’ starting from the mid/late 2Q of this year.” . It is analyzed that when the stock price reaches a peak on the back of strong earnings, a sell-off to realize a profit will continue.
Based on this evaluation, analyst Park maintained a ‘buy’ rating on SK Hynix and a target price of 160,000 won.
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