The authors are analysts of Shinhan Investment Corp. They can be reached at snowKH@shinhan.com and wonyong.sim@shinhan.com, respectively. -- Ed. 4Q21 preview: OP growth estimated at 7% YoYLB Semicon is expected to have recorded sales of KRW126.2bn (+5% YoY) and operating profit of KRW17.1bn (+7% YoY
Samsung Electronics and SK Group are set to make large-scale investments to expand their system semiconductor business.Samsung Electronics broke ground for Line 3 (P3) at its Pyeongtaek Campus in Gyeonggi Province in April 2021. The P3 plant, scheduled to be completed in the second half of 2023, wil
SK Telecom announced on Jan. 2 that it will introduce the Sapeon, an artificial intelligence (AI) semiconductor developed for the first time in Korea, at CES 2022, the world’s largest IT and home appliance exhibition to run in Las Vegas from Jan. 5 to 7 (local time).AI semiconductors are non-memory
Samsung Electronics is expected to surpass Intel to become the world’s No. 1 semiconductor company in terms of sales in 2021.The Korean semiconductor giant surpassed Intel for two years from 2017 thanks to a semiconductor super cycle. However, as demand for memories shrank, it gave Intel the No. 1 s
The authors are analysts of Shinhan Investment Corp. They can be reached at doyeon@shinhan.com and hyon@shinhan.com, respectively. – Ed. 4Q21 OP forecast at KRW15.2tr (-4.0% QoQ)We expect Samsung Electronics to post operating profit of KRW15.2tr (-4.0% QoQ) on sales of KRW75tr (+1.4% QoQ) for 4Q21,
The author is an analyst of KB Securities. He can be reached at jeff.kim@kbfg.com. -- Ed. DRAM demand to grow considerably in 2022 We maintain BUY and TP of KRW100,000 for Samsung Electronics (SEC). Semiconductor industry conditions are likely to bottom out in 1H22 as, contrary to concerns, memory/n
The Korea Exchange announced on Dec. 9 that a KRX-CSI joint index would be announced on Dec. 20.The Korea Exchange and the Shanghai Stock Exchange signed a memorandum of understanding in May for further cooperation in capital markets. The new index is a part of the MOU and will cover South Korean an
The author is an analyst of NH Investment & Securities. He can be reached at midas.sohn@nhqv.com. -- Ed. IONES’s share price fell after the announcement of a change in its largest shareholder. But, noting that the firm’s fundamentals remain intact, we view the drop as representing a good buying oppo
The authors are analysts of Shinhan Investment Corp. They can be reached at doyeon@shinhan.com and hyon@shinhan.com, respectively. – Ed. Awaiting momentum call to follow valuation callSemiconductor stocks tend to rise on valuation call when there are no more negatives and on momentum call when there
The author is an analyst of KB Securities. He can be reached at jeff.kim@kbfg.com. -- Ed. 4Q21 server DRAM demand stronger than expected— On Dec 1, SEC stock reached KRW74,400, up 4.3% from the previous close but still down 10.4% from KRW83,000 on Jan 4. SEC is up only 8.1% from its 2021 bottom of K
The authors are analysts of Shinhan Investment Corp. They can be reached at sh.kim@shinhan.com and mintz95@shinhan.com, respectively. -- Ed. Expanding presence in bio CMO to the US via investment in CBMSK is in final talks to acquire a stake in the Center for Breakthrough Medicines (CBM), a gene and
The authors are analysts of Shinhan Investment Corp. They can be reached at doyeon@shinhan.com and hyon@shinhan.com, respectively. – Ed. 3Q21 operating profit of KRW119bn (+46.2% QoQ)DB HiTek delivered record-high quarterly results for 3Q21. Operating profit of KRW119bn (+46.2% QoQ) on sales of KRW3
The author is an analyst of KB Securities. He can be reached at jeff.kim@kbfg.com. -- Ed. Semiconductor inventories depleting faster than expected; top industry pick We maintain BUY and 12m TP of KRW100,000 on SEC. We favor the stock as our top industry pick because:(1) semiconductor inventories at
The authors are analysts of Shinhan Investment Corp. They can be reached at snowKH@shinhan.com and wonyong.sim@shinhan.com, respectively. -- Ed. 3Q21 sales down 23% YoY to KRW73.1bnTSE posted sales of KRW73.1bn (-23% YoY) and operating profit of KRW10.9bn (-12% YoY) for 3Q21, falling short of the ma
The author is an analyst of KB Securities. He can be reached at jeff.kim@kbfg.com. -- Ed. Maintain target price of KRW140,000; parts supply to improve after 1H22 We maintain BUY and our 12m TP of KRW140,000 on SK hynix based on the following: (1) The parts supply chain should improve after 1H22, as
The authors are analysts of Shinhan Investment Corp. They can be reached at doyeon@shinhan.com and hyon@shinhan.com, respectively. – Ed. 3Q21 OP estimated at KRW105.7bn (+29.9% QoQ)DB HiTek is expected to deliver another record-high in quarterly results with 3Q21 operating profit likely to come in f
SK Hynix is expected to acquire Key Foundry to strengthen its foundry business.The Korean chipmaker is expected to acquire the entire stake in Key Foundry held by Magnus PEF, a private equity fund (PEF).Key Foundry is an 8-inch wafer-based foundry. It was part of LG Semiconductor, which was establis
The authors are analysts of Shinhan Investment Corp. They can be reached at doyeon@shinhan.com and hyon@shinhan.com, respectively. – Ed. Memory market negatively affected by IT supply chain disruptions in 2021Memory stocks have been correcting for a longer than expected time. Risks of prolonged IT s
SK Hynix is seeking to expand its non-memory semiconductor business, with the focus on image sensors."I am confident that CMOS image sensors (CISs) will be a pillar of SK Hynix's growth along with DRAMs and NAND flashes," said Song Chang-rok, vice president of SK Hynix's CIS business, in an
The author is an analyst of KB Securities. He can be reached at jeff.kim@kbfg.com. -- Ed. Maintain BUY; Cut TP by 4.8% to KRW100,000 We maintain BUY on Samsung Electronics, but cut our 12m TP by 4.8% to KRW100,00 (based on target P/B multiple of 2.15x and 12m fwd BVPS) to reflect: (1) a lower ROE (1