The authors are analysts of Shinhan Investment Corp. They can be reached at snowKH@shinhan.com and swoong92@shinhan.com, respectively. -- Ed. Initiate coverage with BUY for a target price of KRW110,000We initiate coverage of TSE with BUY for a target price of KRW110,000, based on 2021F EPS of KRW4,5
GM Korea will stop workers’ overtime on the weekend. This is not due to a labor-management conflict, a drop in sales or the spread of COVID-19. The culprit is a nail-sized automobile semiconductor.A significant shortage of semiconductors for cars is unprecedentedly halting or delaying car production
The global semiconductor industry is expected to show a rapid growth this year with telecommuting and contactless business models becoming a new normal. Under the circumstances, semiconductor material suppliers such as SK Materials, Wonik Materials and SKC are anticipating a business boom.Samsung Se
Last year, the top 10 South Korean business groups signed 20 M&A deals despite COVID-19 in order to ensure their future growth. For instance, SK Hynix acquired Intel’s NAND flash business unit for 10.3 trillion won in October last year. Hyundai Motor Group signed two major deals, that is, Boston Dyn
SK Hynix will issue US$2.5 billion worth of global bonds, the largest bond sale for a Korean company. Global bonds refer to bonds that are issued simultaneously in major global financial markets such as the United States, Europe, and Asia.Analysts say that SK Hynix garnered attention from foreign in
The authors are analysts of Shinhan Investment Corp. They can be reached at doyeon@shinhan.com and sungjun.na@shinhan.com, respectively. -- Ed. 4Q20 OP forecast at KRW0.87tr(-33.3% QoQ)We now expect SK Hynix to post operating profit of KRW0.87tr (-33.3% QoQ) on sales of KRW7.67tr (-5.7% QoQ) for 4Q2
The authors are analysts of Shinhan Investment Corp. They can be reached at doyeon@shinhan.com and sungjun.na@shinhan.com, respectively. -- Ed. 4Q20 preliminary OP reported at KRW9.0tr (-27.1% QoQ)Samsung Electronics released preliminary results for 4Q20 at operating profit of KRW9.0tr (-27.1% QoQ)
The authors are analysts of Shinhan Investment Corp. They can be reached at doyeon@shinhan.com and sungjun.na@shinhan.com, respectively. -- Ed. Look beyond historical valuation ceiling and bet on directionalityMemory earnings are likely to continue on an uptrend through 1H22. With DRAM ASP hikes for
The Ministry of Trade, Industry and Energy announced on Jan. 5 that South Korean semiconductor companies’ capex for this year and next year are estimated at US$18.9 billion, up 20.4 percent from a year ago, and US$19.7 billion, respectively. It also said that those of China and Taiwan are estimated
The author is an analyst of NH Investment & Securities. He can be reached at hwdoh@nhqv.com. -- Ed. We predict that DRAM capacity investment will be executed conservatively in 2021. Both SEC and SK Hynix will focus on securing profitability this year. While demand for new data center and PC products
Samsung Electronics vice chairman Lee Jae-yong visited a semiconductor plant in Pyeongtaek on Jan. 4. He emphasized the need to build a healthy semiconductor ecosystem in Korea during his visit. Industry watchers say that Lee stressed the importance of joining forces with small and medium-sized busi
The author is an analyst of NH Investment & Securities. He can be reached at hwdoh@nhqv.com. -- Ed. IT demand remains strong. We expect server investment to expand in line with the launch of Intel’s Whitley platform. Notebook PC shipments should also remain robust in 1H21. SMIC sanctions are increas
The authors are analysts of Shinhan Investment Corp. They can be reached at johnsoh@shinhan.com and chank@shinhan.com, respectively. -- Ed. 4Q20 OP to exceed consensus at KRW30.6bnHansol Chemical is expected to report operating profit of KRW30.6bn (-40.4% QoQ, +77.2% YoY) on sales of KRW161bn (-2.2%
Micron Technology of the United States is speeding up the development of DRAMs using extreme ultraviolet (EUV) lithography. It is joining a race that was initiated by the world's first- and second-ranked DRAM manufacturers -- Samsung Electronics and SK Hynix.Micron Technology is looking for engi
As another semiconductor super cycle is expected to kick off next year, semiconductor companies are intensifying efforts to get a bigger share of the market. In particular, competition for new technologies is intensifying in the memory semiconductor market.Samsung Electronics is planning to launch D
The authors are analysts of Shinhan Investment Corp. They can be reached at doyeon@shinhan.com and sungjun.na@shinhan.com, respectively. -- Ed. 4Q20 operating profit forecast at KRW0.76tr (-41.2% QoQ)SK Hynix is expected to post operating profit of KRW0.76tr (-41.2% QoQ) on sales of KRW7.65tr (-5.9%
The author is an analyst of NH Investment & Securities. He can be reached at hwdoh@nhqv.com. -- Ed. In 2021, we expect SK Materials’ product portfolio to go beyond semicon materials to include OLED materials. A likely improvement in memory supply-demand conditions from early 2021 and SK Hynix’s acqu
The authors are analysts of Shinhan Investment Corp. They can be reached at johnsoh@shinhan.com and chank@shinhan.com, respectively. -- Ed. 4Q20 OP to beat consensus at KRW66.4bnSK Materials is expected to report operating profit of KRW66.4bn (+6.2% QoQ, +35.1% YoY) on sales of KRW257.9bn (+4.6% QoQ
The author is an analyst of KB Securities. He can be reached at jeff.kim@kbfg.com. -- Ed. Raise TP to KRW92,000; 2021E Semiconductors OP up KRW10tn YoY We maintain BUY and upgrade our 12m TP by 5% to KRW92,000 (12m fwd BVPS x 2.1x target P/B) on SEC, accommodating upward revisions to 2021E/2022E NP
The author is an analyst of KB Securities. He can be reached at jeff.kim@kbfg.com. -- Ed. TP raised to KRW150,000; DRAM prices to rebound in 1Q21 We reiterate BUY and raise our 12m TP for SK hynix by 15% to KRW150,000 (12m fwd BVPS x 1.88x target P/B). Our TP was raised due to a jump in ROE (9.9% →