SK hynix as the top player among large semiconductor stock
DRAM effect’TokTok’, which has rebounded in price in the last 8 months
SK hynix’s Icheon factory entrance door. (Photo = Yonhap News)
As expectations for the return of the semiconductor’supercycle (long-term price increase)’ this year are growing, interest is drawing on large semiconductor stocks.
In the stock market, Samsung Electronics(83,200 +0.85%)More SK hynix(126,500 +1.20%)We forecast that the uptrend of the company will be steeper, and presented SK Hynix as the top pick among large semiconductor stocks.
According to the financial investment industry on the 5th, experts are paying attention to the diversification of semiconductor demand. This is because the demand for robots and automobiles has added to the existing demand for home appliances, IT parts, and servers. It is analyzed that the growth rate of the fourth industrial revolution is accelerating due to the novel coronavirus infection (Corona 19), and expectations for semiconductors are strengthening.
Lee Kyung-min, a researcher at Daishin Securities, said, “Semiconductor prices are likely to rise above the historical peak in 2018 during this year. Considering the semiconductor cycle, the cycle is expected to rise until at least 2022.”
In fact, last month’s semiconductor exports to Korea amounted to $8.72 billion, an increase of 22% from the same period last year. While securing data centers of global IT companies resumed, the supply of DRAM (RAM) failed to meet demand due to a power outage at Taiwan’s semiconductor facility, resulting in a rise in fixed prices.
Experts predicted that SK Hynix’s share price will show a better trend than Samsung Electronics this year.
Samsung Electronics is expected to perform well in memory and foundries, but concerns about IM (IT and Mobile) and CE (Consumer Electronics) sectors are raising.
SK Securities researcher Kim Young-woo said, “It is unclear whether the Galaxy S21 will become more popular than the previous year due to the popularity of Apple and the cost-effectiveness strategies of Chinese companies.” .
SK Hynix is expected to benefit from DRAM prices, which have rebounded in the last eight months. As DRAM accounts for 80% of SK Hynix’s semiconductor sales, price fluctuations are directly related to earnings.
“The factors that affect the stock prices of SK Hynix and Samsung Electronics in the future are price, quantity, and cost direction in the semiconductor industry,” said Kim Kyung-min, a researcher at Hana Financial Investment. “Excluding NAND If the quantity increase in the rest of the field is limited, it is advantageous for a company that can quickly reflect the increase in DRAM product prices in company-wide performance.”
SK Hynix, which had a poor performance in 2019, recovered its operating profit of 5 trillion won last year, signaling a recovery in earnings. Last year, SK Hynix’s sales and operating profit were KRW 31.9 trillion and KRW 5 trillion, respectively, up 18.2% and 84.3% year-on-year.
Lee Soon-hak, a researcher at Hanwha Investment & Securities, said, “The DRAM business is creating a market environment that is superior to suppliers as demand and limited supply continue to increase. If it improves, it is possible to turn into a profit faster than expected.”
Eunji Cha, reporter Hankyung.com [email protected]