"Now Is the Time to Buy SK hynix" Target Price Kept at 1.7 Million Won... RFHIC Target Raised 50% on Samsung Electronics Order Expectations [Stocktopia]

[The Financial News] On the morning of March 31, here is a summary of key reports from major securities firms.
Analysts say the recent pullback in SK hynix shares, triggered by escalating tensions in the Middle East and Google’s TurboQuant issue, should be viewed as a meaningful buying opportunity. LG Energy Solution is expected to post a loss in the first quarter, but its Energy Storage System (ESS) sales are projected to soar 249% year-on-year this year, paving the way for an earnings rebound from the second quarter. RFHIC, a specialist in compound semiconductor components, is forecast to see its share price continue rising through 2028, supported by large telecom orders from Samsung Electronics and Ericsson in the second half and growing defense contracts.
◆SK hynix (000660)― KB Securities / Kim Dong-won, Head of Research
- Target price: 1.7 million won (unchanged) | Previous close: 873,000 won
- Investment rating: Buy
KB Securities reported that despite geopolitical risks stemming from the war in the Middle East, orders for SK hynix’s memory semiconductors in the second quarter are actually strengthening and exceeding previous expectations. It therefore projects operating profit this year to reach 177 trillion won, up 275% from last year, and maintained its target price of 1.7 million won. Kim Dong-won noted that major customers are meeting only about 60% of their memory demand, so they continue to prioritize securing volume over price. He added that this tight supply–demand environment is likely to persist for at least three years, and judged the recent short-term share price correction to be a meaningful buying opportunity.※ Google TurboQuantTurboQuant is an AI optimization technology unveiled by Google that can cut AI memory usage to about one-sixth of current levels. At first glance, it may appear negative for SK hynix, but KB Securities argues that the technology will actually lower the entry barrier for AI services and in turn boost both overall AI demand and memory content per system. The firm compared it to the 1860s, when improvements in steam engine efficiency paradoxically led to a surge in coal demand, and explained that a similar "rebound effect," where efficiency gains expand total demand, is highly likely to play out in the AI industry.
◆LG Energy Solution (373220)― Shinyoung Securities / Jinsu Park, Analyst
- Target price: 590,000 won (unchanged) | Previous close: 410,000 won
- Investment rating: Buy
Shinyoung Securities expects LG Energy Solution to post an operating loss of 181.2 billion won in the first quarter, due to the shutdown at Ultium Cells and production gaps on electric vehicle lines. However, it sees this as the bottom and maintained its target price of 590,000 won and Buy rating, citing strong growth in the ESS business and a clear trend of earnings improvement quarter by quarter. Analyst Jinsu Park forecasts that North American ESS production capacity will expand to 60 GWh by the end of this year and that ESS revenue will surge 249% year-on-year to 9.6 trillion won in 2026. Park also pointed to Tesla’s 29% year-on-year recovery in European sales in February and the normalization of utilization at the company’s plant in Poland as additional positive factors for the second half.※ Ultium CellsUltium Cells is an electric vehicle battery joint venture that LG Energy Solution and General Motors (GM) have established and operate together in the United States. A temporary shutdown at this plant was a major reason why LG Energy Solution’s automotive battery revenue in the first quarter fell 24% from the previous quarter.
◆RFHIC (218410)― Hana Securities / Kim Hong-sik, Analyst
- Target price: 150,000 won (raised) | Previous close: 78,700 won
- Investment rating: Buy
Hana Securities raised its target price for RFHIC to 150,000 won after revising up its earnings forecasts for 2026–2028. The firm noted that RFHIC has already secured orders in the defense sector from Raytheon and LIG Nex1, and that large telecom orders from Samsung Electronics and Ericsson are expected in the second half. Analyst Kim Hong-sik expects RFHIC’s main product, the gallium nitride (GaN) high-frequency power transistor (GaN TR), to face a supply shortage next year. He projected that demand will concentrate on RFHIC and that the company’s valuation multiple could jump to more than 10 times next year.
※Gallium nitride transistor (GaN TR)This is a compound semiconductor component that can withstand much higher frequencies and output than silicon transistors, and is used in 5G base stations as well as defense radars and missile guidance systems. RFHIC focuses on producing this component, and with demand for high-frequency parts surging while the number of suppliers shrinks, analysts expect demand to increasingly concentrate on RFHIC.

sms@fnnews.com Minseo Sung Reporter