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<Research> KB Securities Raises SK Hynix TP to 3M won, Expects 2Q26 Operating Profit to Surge 6.6x YoY
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South Korea's stock market suffered a "stock crash" today (15th), with the KOSPI plunging 488 points or 6.1% to close at 7,493 points. Heavyweights Samsung Electronics and SK Hynix dragged down the broader market, ending down 8.6% and 7.7%, respectively. KB Securities issued a report today raising its TP for SK Hynix from 2.8M won to 3M won, reiterating a "Buy" rating. KB Securities lifted its target price mainly due to expectations that DRAM and NAND prices in the second quarter will exceed previous forecasts. The firm now projects 2026 DRAM prices to rise 194% YoY and NAND prices to increase 244% YoY. Reflecting this outlook, it raised its operating profit forecasts for SK Hynix for this year and next year to 277 trillion won and 428 trillion won, respectively, representing premiums of 10.2% and 25.1% over market consensus. Kim Dong-won, head of research at KB Securities, said memory semiconductors will become scarce strategic assets that determine the overall performance of AI systems. SK Hynixs USD1 trillion market capitalization (equivalent to 2.1 million won per share) is expected to form strong support going forward. According to KB Securities, SK Hynixs operating profit for 2Q26 is estimated at 70 trillion won, 13.4% above market expectations, implying a 660.4% YoY surge and an 86.3% QoQ increase. The operating margin is forecast at 79.2%. The brokerage noted that as new memory production lines are not expected to be fully operational until after 2027, supply constraints will persist. Kim stated that "the memory industry is effectively entering an era of zero supply," adding that based on major customers demand forecasts for 2027, memory supply next year will be tighter than this year.(da/u) Auto-translated by AI This article was automatically translated by AI, the original language 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. More Details
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