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<Research> Nomura Raises SK Hynix (000660.KS) Operating Profit Forecasts, Expects Long-term Supply Deals to Support High Profitability
Recommend 7 Positive 5 Negative 7 |
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Nomura said in a research report that it maintained a "Buy" rating on SK Hynix (000660.KS) and raised its operating profit forecasts for fiscal years 2026 and 2027 by 9% and 4%, respectively, to reflect better-than-expected earnings prospects. The target price was lifted by 21% from 1.93 million won to 2.34 million won. The broker noted that memory manufacturers are currently negotiating long-term supply agreements with key customers, covering favorable terms such as supply volume, pricing and prepayments. If such contracts are successfully signed and become a new business model for the industry, it believes the high profitability of memory suppliers can be sustained over the medium to long term. This would help narrow the risk premium, which is currently significantly higher than that of other technology companies, and support further re-rating of the shares. Based on the current share price, the broker expects free cash flow yields of 17% and 33% for fiscal years 2026 and 2027, respectively. Assuming 50% of free cash flow is used for shareholder returns, total shareholder returns for the same periods would reach 8% and 17%, respectively. (ss/u) This article was automatically translated by AI, the Chinese version should be considered the authoritative version. AASTOCKS.com Limited does not guarantee its accuracy or completeness and accepts no liability for any damages or losses arising from the use of this translation. Auto-translated by AI AASTOCKS Financial News |
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