"Heading for 1.5 Million Won" SK hynix Gets Its Highest Target Price Ever... Hyundai Motor Company Seen Offsetting 25% Tariff with Robotics Value

[The Financial News] On the morning of January 28, here is a summary of key reports from major securities firms.
SK hynix is expected to generate 147 trillion won in operating profit this year on the back of rising memory prices, and has received a record-high target price of 1.5 million won. Hyundai Motor Company is projected to more than offset the impact of U.S. President Donald Trump’s 25% tariff hike by reflecting the value of its robotics business. LS ELECTRIC achieved record quarterly earnings in the fourth quarter thanks to growing sales of power infrastructure for North American data centers.
◆SK hynix (000660)― KB Securities / Kim Dong-won, head of research at KB Securities
- Target price: 1.5 million won (raised from 1 million won)
- Investment opinion: Buy
SK Securities stated that, reflecting the strong upcycle in the memory market, SK hynix’s operating profit will reach 147 trillion won this year with an operating margin of 72%, marking all-time highs in both earnings and profitability, and accordingly raised its target price from 1 million won to 1.5 million won. Analyst Han Dong-hee noted that the projected operating profit is about 34% above the market consensus and the margin about 11 percentage points higher, and projected that the massive cash flow to be generated in the memory industry will be used to enhance corporate value through shareholder returns, contract-based capital expenditure, and mergers and acquisitions.
◆Hyundai Motor Company (005380)― Hanwha Investment & Securities / Kim Sung-rae
- Target price: Not provided
- Investment opinion: Not provided
Hanwha Investment & Securities noted that, although President Donald Trump announced on the 26th (local time) that tariffs on Korean-made automobiles would be raised again from 15% to 25%, the impact on Hyundai Motor Company is expected to be sufficiently offset. Analyst Kim Sung-rae estimated that, with a 25% tariff, the combined operating profit impact on Hyundai Motor Company and Kia would worsen from 6.3 trillion won to 10.9 trillion won, but assessed that expectations for commercialization of robotics, centered on Boston Dynamics’ Atlas humanoid robot, are being reflected in the company’s valuation, thereby reducing the negative effect on the share price.※ RoboticsRobotics refers both to the comprehensive technologies that study how to solve problems using robots and to the broader robot industry. Hyundai Motor Company acquired Boston Dynamics and is aiming to move into a full commercialization phase in which humanoid robots are actually deployed in manufacturing and logistics sites to generate revenue. Through this, the company is transforming itself from a traditional automaker into a future mobility and robotics company.◆LS ELECTRIC (010120)― Yuanta Securities Korea / Son Hyun-jeong
- Target price: 735,000 won (raised from 600,000 won)
- Investment opinion: Buy
Yuanta Securities Korea explained that LS ELECTRIC delivered better-than-expected results thanks to expanding sales of power infrastructure to North American data centers, and raised its target price from 600,000 won to 735,000 won. Analyst Son Hyun-jeong said that fourth-quarter revenue came in at 1.5208 trillion won and operating profit at 130.2 billion won, up 11.9% and 8.6% year-on-year, respectively. Operating profit beat the consensus and reached a record high on a quarterly basis. Son added that the direct driver of the earnings improvement was higher sales of power infrastructure to North American data centers, and noted that sales of short lead-time products such as switchgear led the performance.※ SwitchgearThis is equipment that distributes electricity generated at power plants or substations to individual buildings or facilities. Large data centers consume enormous amounts of power, so reliable switchgear that can distribute electricity stably is essential. Because switchgear can be manufactured and delivered quickly after an order is placed, it is a short lead-time product, and increases in data center investment show up in switchgear sales faster than in other areas.

sms@fnnews.com Seong Min-seo Reporter