Shinhan Securities raises Samsung Electronics’ target price to 59ten-thousand won and SK hynix’s to 420ten-thousand won

Shinhan Securities raised Samsung Electronics’ target price on 6month 30day from the previous 55ten-thousand won to 59ten-thousand won. The report cited strong memory prices and the effects of favorable exchange rates as the backdrop.

On the same day, it also raised SK hynix’s target price from the previous 365ten-thousand won to 420ten-thousand won. Shinhan Securities wrote that it made the assessment based on favorable memory industry conditions and exchange-rate fluctuations.

The report put Samsung Electronics’ expected revenue for the 2quarter at 174trillion 2000hundred million won and operating profit at 82trillion 1000hundred million won. It explained that these figures reflected favorable conditions in the memory business.

The report 2estimated the provision for quarterly performance bonuses at the 10high end of the trillion-won range. It stated that, excluding the provision, operating profit would be at a level 100exceeding the trillion-won mark.

The report also said that 2quarterly earnings estimates for SK Hynix had been raised. Strength in memory prices and foreign-exchange effects were cited as common factors behind the upward revisions.

Shinhan Investment & Securities maintained its investment opinion at “Buy.” The report added that an increase in the average selling price of HBM (high-bandwidth memory) could contribute to improved profitability in the second half of the year.

The report was published on 6month 30day. The related figures and outlook are based on a report by Shinhan Investment & Securities.

However, the report also stated that HBM competitiveness would be reevaluated from the second half of the year through next year. It indicated that this point warrants attention.