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2026-04-09 13:23:35 Media cited a UBS report stating that AI-driven demand for HBM continues to crowd out DDR capacity. Coupled with the replacement cycle for traditional servers and a synchronized surge in SSD demand, the supply-demand gap in the global DRAM market is expected to extend through 4Q27, marking a once-in-30-years memory supercycle. At the same time, the DRAM market has become highly consolidated into a triopoly structure. On the supply side, there is insufficient incentive for "competitive capacity expansion" to offset demand shocks, reducing the intensity of cyclical corrections. The price upcycle driven by this demand supercycle is therefore expected to be more persistent. UBS noted that SK Hynix (000660.KS) holds a leading position in the HBM segment. Using a 12-month forward price-to-book multiple, and based on its long-term ROE forecast of 32.1% and cost of equity of 11.2%, UBS derived a target P/B of 2.86x. The TP was raised from KRW1.55 million to KRW1.7 million. The bank also significantly lifted its EPS forecasts for 2026 and 2027 by 22% and 29%, respectively. Its 2026 operating profit forecast reaches KRW286 trillion (approximately USD193.115 billion), about 57% above market consensus. On the revenue front, UBS forecasts SK Hynix's total revenue at KRW355.1 trillion in 2026 (41% above market expectations) and KRW531.6 trillion in 2027 (65% above market expectations). For operating profit, the bank projects KRW286 trillion in 2026 (57% above market expectations) and KRW443.5 trillion in 2027 (88% above market expectations). As for near-term catalysts, UBS mentioned that a potential ADR listing of SK Hynix could be accompanied by a share buyback plan in the South Korean market, forming a "dual positive" effect by enhancing allocation convenience for overseas investors while directly supporting its share price in Korea. (da/u)~ AASTOCKS Financial News Website: www.aastocks.com 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. | |