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SK Hynix “to Earn Highest Operating Profit Next Year”
Semiconductor Industry
SK Hynix “to Earn Highest Operating Profit Next Year”
  • By matthew
  • October 11, 2013, 07:14
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A local investment company said on October 10 that it revised the target price of SK Hynix upward from 40,000 won (US$37.32) to 45,000 won (US$41.99), based on a projection that the chip producer would achieve its highest-ever operating profit in 2014. 

An analyst in Shinhan Investment said, “The DRAM shipment for 2014 is expected to grow about 21.1 percent in 2014 while it is estimated to grow 23.4 percent this year. The slowdown in shipment growth will lead to a rise in chip prices, which again will help the company achieve operating profits of 3.95 trillion won [US$3.69 billion] this year, up 24 percent from last year."

He estimated that the third quarter sales revenue and operating profit will be 4.6 trillion won (US$4.3 billion) and 1.15 trillion won (US$1.07 billion), up 3.1 and 3.6 percent, respectively, prospecting that the operation of the Wuxi plant in China will rise back to normal levels about two months after the fire.

He added the fourth-quarter sales revenue and operating profit would be 3.17 trillion (US$2.96 billion) and 600 billion won (US$559 million), respectively, as the sales revenue is expected to decline 19.7 percent in Q4 owing to the Wuxi plant fire.