Latest Search
Quote
| Back Zoom + Zoom - | ||||
|
<Research> BOCOM International Initiates SK Hynix (000660.KS) at Buy, TP KRW1.3M; Upcycle May Last at Least Until 1Q27
Recommend 1 Positive 1 Negative 4 |
||||
|
||||
|
BOCOM International issued a report stating that the upcycle of SK Hynix (000660.KS) may last at least until 1Q27. The broker initiated coverage with a Buy rating and a target price of KRW1.3 million. It believes the global memory industry may be experiencing the strongest upcycle of this century, with tighter supply-demand dynamics in DRAM and NAND compared with previous cycles, and expects memory prices to remain at peak levels at least until 1Q27. The report noted that competitive advantages in HBM may persist, while conventional DRAM has likely achieved technological leadership beyond the 1b process node. The broker believes sustained demand growth for AI accelerators and cyclical equipment upgrades in data centers are the main drivers of rising demand for HBM and conventional DRAM. Although Samsung Electronics (005930.KS) has made progress in HBM4 technology, SK Hynix is expected to maintain its lead in yield and performance due to its first-mover advantage. With the ramp-up of the 1c process and volume production at the M15X plant, the broker forecasts the companys DRAM bit capacity to increase 22% YoY in 2026. The report added that NAND demand is likely to remain strong amid storage architecture adjustments. It cited NVIDIA (NVDA.US) Vera Rubins proposed new storage architecture as an important driver of data center NAND demand growth. The new architecture essentially enables dynamic allocation, pre-reservation and efficient interaction of NAND resources for AI inference. The broker noted that SK Hynixs NAND business strategy is margin-oriented, while major NAND suppliers have generally maintained rational and disciplined capacity expansion. BOCOM International forecasts SK Hynixs revenue for 20262028 at KRW242 trillion, KRW312.3 trillion and KRW403 trillion, respectively, with diluted EPS projected at KRW199,000, KRW265,000 and KRW342,000, respectively. (ha/da) This article was automatically translated by AI, the Chinese version should be considered the authoritative version. AASTOCKS.com Limited does not guarantee its accuracy or completeness and accepts no liability for any damages or losses arising from the use of this translation. Auto-translated by AI AASTOCKS Financial News |
||||
Copied to Clipboard
 |
||||
