"SK hynix could hit KRW 1.6 million" as memory prices soar and targets rise... LS ELECTRIC target lifted from KRW 750,000 to KRW 1 million on up to KRW 6 trillion in orders [Stocktopia]

[Financial News] On the morning of April 2, here is a summary of key brokerage reports.
SK hynix is expected to see prices for DRAM and NAND flash memory jump more than 100% quarter-on-quarter, with price gains across all memory products far exceeding earlier forecasts. Doosan Enerbility recently secured orders for seven gas turbines from U.S. Big Tech companies and, together with the commercialization of small modular reactors (SMRs), is projected to reach KRW 15 trillion in new orders by 2030. LS ELECTRIC is expected to enter a full-fledged growth phase in power equipment orders for AI data centers this year, with operating profit projected to surge 62%.
◆SK hynix (000660)― Hana Securities / Analyst Kim Rokho
- Target price: KRW 1.6 million (raised) | Previous close: KRW 893,000
- Investment rating: Buy
Hana Securities sharply revised up its first-quarter operating profit estimate for SK hynix to KRW 36.9 trillion, almost KRW 10 trillion higher than the KRW 27 trillion range it projected two months ago. Analyst Kim Rokho pointed to PC DRAM contract prices soaring 110–115% quarter-on-quarter and the price of a DDR5 16Gb DRAM chip jumping fivefold in just six months, with prices across all product lines beating expectations. He also cited SK hynix’s confidential filing of an American Depositary Receipt (ADR) registration statement with the United States Securities and Exchange Commission (SEC) for a potential listing on the U.S. stock market, as well as advance payment and penalty clauses in long-term supply contracts, as factors that reduce earnings volatility and support a re-rating of the share price.※ ADR (American Depositary Receipt)This is a certificate that allows shares of a foreign company to trade on U.S. exchanges like domestic stocks. Once an ADR is listed, U.S. institutional investors can buy SK hynix shares much more easily, helping the company’s value be more accurately reflected in global markets.
◆Doosan Enerbility (034020)― Korea Investment & Securities / Analyst Jang Nam-hyun
- Target price: KRW 140,000 (new) | Previous close: KRW 99,600
- Investment rating: Buy (initiated)
Korea Investment & Securities noted that Doosan Enerbility last month signed a supply contract with U.S. Big Tech companies for seven gas turbines and projected that its order backlog in 2030 will surge 114.6% from the previous year, initiating coverage with a target price of KRW 140,000. Analyst Jang Nam-hyun forecast that if you combine Team Korea’s nuclear export deals (eight reactors worth KRW 5.5 trillion), orders based on the Westinghouse AP1000 pressurized water reactor (more than 20 reactors worth KRW 9.5 trillion), and visibility on orders for over 70 SMR units, new orders could reach KRW 15 trillion by 2030.※ SMR (small modular reactor)An SMR is a small nuclear power plant about one-tenth the size of a conventional large reactor, in which components are manufactured in a factory and then assembled on site. It shortens construction time and cuts costs, while demand from Big Tech is surging as SMRs can serve as a stable power source for AI data centers. Doosan Enerbility is seen as a key beneficiary in Korea, supplying critical components to U.S. players such as NuScale Power and TerraPower.
◆LS ELECTRIC (010120)― Daishin Securities / Analyst Heo Min-ho
- Target price: KRW 1 million (raised from KRW 750,000) | Previous close: KRW 794,000
- Investment rating: Buy (maintained)
Daishin Securities raised its forecast for LS ELECTRIC’s order intake this year from KRW 4–5 trillion to KRW 5–6 trillion and lifted its target price from KRW 750,000 to KRW 1 million, judging that orders for power equipment used in AI data centers have entered a full-fledged growth phase. Analyst Heo Min-ho projected 2024 revenue of KRW 6.14 trillion (up 24%), operating profit of KRW 689.7 billion (up 62%), and an operating margin of 11.2% (up 2.6 percentage points), and stated that LS ELECTRIC, which has competitiveness from distribution equipment to next-generation high-voltage direct current (HVDC) power systems, can command a valuation premium over its peers.

sms@fnnews.com Seong Min-seo Reporter