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Daiwa Cuts SK Hynix TP to KRW3M; Solid Fundamentals Prompt Bargain Hunt
2026-07-30 13:39:26
SK Hynix's 2Q revenue reached KRW79.3 trillion, up 51% QoQ and 257% YoY, Daiwa said in a report. Operating profit was KRW60.5 trillion, up 61% QoQ and 557% YoY, both around 7% below the broker's and market expectations, owing to a weaker-than-expected increase in ASP wrought by an unfavorable DRAM product mix.

Management upheld a positive outlook for 2H, expecting DRAM shipments to grow about 10% QoQ in 3Q, with continued product mix improvement including HBM4 and 1cnm DRAM.

Daiwa believed the recent share price correction of SK Hynix has been excessive and recommended investors buy on dips, while reiterating its Buy rating. However, due to valuation downgrades among memory peers, the broker cut its 12-month TP from KRW3.6 million to KRW3 million.
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