I see a market capitalization of 200 trillion won

#SK Hynix

I see a market capitalization of 200 trillion won

2Q24 Preview: Above Consensus

SK Hynix's Q2 FY24 revenue is expected to be KRW 16.85 trillion (YoY +131% and QoQ +36%) and operating profit of KRW 5.62 trillion (YoY surplus conversion, QoQ +95%)

Estimated to Be Above Consensus Currently Upgraded

Both DRAM and NAND continue to have tight supply and demand, with better-than-expected business conditions
Deploying. DRAM's B/G is expected to rise 14% in line with guidance and 21% in price, the same as previous forecast. Shipments are expected to outperform their rivals on the basis of the previous quarter and the start of HBM 3E 8-step supply. NAND's B/G is assumed to be 1% higher than Q1 guidance and the price is 20% higher than previous estimates

It is estimated to be the same as the increase in NAND prices of the same companies, and it is considered a good increase considering that the price increase in the fourth quarter of 2023 and the first quarter of 24 was large due to eSSD. The amount of inventory revocation is estimated to be less than 0.5 trillion won

2024 and 2025 earnings rise again

Compiling this earnings preview report, raising performance for 2024 and 2025 once again

Operating profit for the year 24 was raised from KRW 23.3 trillion to KRW 26.2 trillion, and from KRW 39 trillion to KRW 43.3 trillion in the year 25

The shipping assumption is similar to the previous forecast and is due to the upward revision of the price and exchange rate assumption. NAND's price increase fluctuated more than DRAM, and the exchange rate was raised from KRW 1,311 to KRW 1,351 in '25 years

There is also a possibility that the current estimate will be further raised

The upward variable is 1) the effect of 8th stage HBM 3E in the third quarter of 2023 and the impact of DRAM on Blended ASP 2) the capacity to increase demand due to the launch of AI PCs and the recovery of general server customers

Conversely, the downside risk would be the easing of tight supply and demand, a supply-side variable
looks limited, expects weak demand amid global recession