"Aiming for 4.2 Million Won for SK hynix" — Overcoming AI Efficiency Concerns and Touching 2 Million Won... Hyundai Engineering and Construction Sees Nuclear Power Momentum Reignite in the Second Half [Zootopia]

/Photo=Yonhap News Agency [Financial News] Here is a roundup of major brokerage reports as of the morning of July 22. 2 million won, as analysts said improvements in artificial intelligence efficiency would not reduce investment but instead expand demand and further stimulate total memory demand.
Hyundai Engineering and Construction was expected to continue improving earnings from the second half of this year, as the target price was lowered due to higher interest rates, but momentum from U. S.
nuclear power supply chain support and partner companies is set to become visible. Orion Corporation also received a positive assessment for lower raw material prices, strong sales at major overseas subsidiaries, and expanded shareholder returns through its first interim dividend since its founding.
2 million won target price for SK hynix, saying the ongoing competition among Big Tech firms to invest in AI will keep the long-term upcycle intact.
/Photo=Yonhap News Agency [Financial News] Here is a roundup of major brokerage reports as of the morning of July 22. 2 million won, as analysts said improvements in artificial intelligence efficiency would not reduce investment but instead expand demand and further stimulate total memory demand./Photo=Yonhap News Agency [Financial News] Here is a roundup of major brokerage reports as of the morning of July 22. 2 million won, as analysts said improvements in artificial intelligence efficiency would not reduce investment but instead expand demand and further stimulate total memory demand." He also said efficiency would boost demand.Kim explained, "From a company’s perspective, if AI inference costs fall, it will likely run more AI tasks through multi-agent integration.Even if the memory required per inference drops to one-third, total memory demand would still rise sevenfold if usage expands 20 times.
" In other words, even if each use requires less memory, the number of uses increases much faster.
He added, "Ultimately, improvements in AI models and semiconductor efficiency are not factors that reduce AI investment.
They are factors that further stimulate AI demand by lowering service prices and expanding use cases.
" He also pointed to a change in the revenue mix.
Kim said, "The memory upcycle in 2026-2027 is expected to show a clear difference in revenue structure compared with 2017-2018," adding that the share of B2B revenue centered on Big Tech and AI data centers is expected to rise from 30% in 2017 to 70%.
※AI Inference This refers to the stage in which an AI system, after training, actually answers questions or generates outputs.
It is what happens every time you ask a chatbot something, and memory semiconductors are essential in that process to store data.※Multi-Agent This is a method in which multiple AIs divide tasks, exchange results, and work together to complete a job.It is similar to splitting one person’s work among a team, which greatly increases the number of times AI is used.Hyundai Engineering and Construction: U.S.
/Photo=Yonhap News Agency [Financial News] Here is a roundup of major brokerage reports as of the morning of July 22. 2 million won, as analysts said improvements in artificial intelligence efficiency would not reduce investment but instead expand demand and further stimulate total memory demand./Photo=Yonhap News Agency [Financial News] Here is a roundup of major brokerage reports as of the morning of July 22. 2 million won, as analysts said improvements in artificial intelligence efficiency would not reduce investment but instead expand demand and further stimulate total memory demand." He also said efficiency would boost demand.However, it lowered the target price from 230,000 won to 170,000 won to reflect a higher risk-free rate.The reason for the lower target price was interest rates, not earnings.
Jang Moon-jun, a researcher at KB Securities, said, "The company will post solid results thanks to improved profitability in the housing segment and a recovery in margins at consolidated subsidiaries," but added, "We adjusted the valuation in line with the rise in the risk-free rate.
He added, "Ultimately, improvements in AI models and semiconductor efficiency are not factors that reduce AI investment.
" In other words, the company’s earnings are not the problem, but the market is assigning a lower stock price multiple to the same profits as interest rates rise.
5 billion nuclear supply chain support program, the initial public offering of partner Holtec, and the start of small modular reactor projects.
He added, "As AI infrastructure expands and energy security becomes more important, construction timelines are becoming even more critical in nuclear power projects.
" He continued, "Hyundai Engineering and Construction has more than 50 years of nuclear construction experience, has handled 10 large reactors simultaneously in the 2010s, and has completed overseas projects on time and on budget.That track record should strengthen its competitiveness in the global nuclear market." ※Risk-free rate This is an interest rate that can be received without the risk of default, such as on government-backed bonds.When this rate rises, stocks that can lose principal are required to deliver even higher returns.Even if a company’s earnings remain unchanged, a higher required return means its share price must fall accordingly, so the fair value declines regardless of performance.
/Photo=Yonhap News Agency [Financial News] Here is a roundup of major brokerage reports as of the morning of July 22. 2 million won, as analysts said improvements in artificial intelligence efficiency would not reduce investment but instead expand demand and further stimulate total memory demand./Photo=Yonhap News Agency [Financial News] Here is a roundup of major brokerage reports as of the morning of July 22. 2 million won, as analysts said improvements in artificial intelligence efficiency would not reduce investment but instead expand demand and further stimulate total memory demand." He also said efficiency would boost demand.In nuclear power projects, where costs run into trillions of won, delays can cause financing costs to balloon and postpone electricity sales revenue.That is why a record of completing projects on schedule and within budget directly translates into stronger order competitiveness.
0%, from 155,000 won) | Previous close: 128,000 won Yuanta Securities raised its target price for Orion Corporation to 172,000 won, saying profitability will improve in the second half thanks to lower raw material costs and growth at its China and Russia subsidiaries.
He added, "Ultimately, improvements in AI models and semiconductor efficiency are not factors that reduce AI investment.
Son Hyun-jung, a researcher at Yuanta Securities, said, "In the second half of this year, the effect of lower prices for key raw materials will widen, and fixed-cost leverage from higher sales in China and Russia will begin in earnest, lifting earnings growth.
" She added, "The current share price is trading at a discount to global confectionery peers, at 9 times next year’s expected price-earnings ratio.
" The analysis suggests that as sales rise, fixed costs are spread over more units, boosting profits, while the stock still trades more cheaply than overseas competitors.
The brokerage also cited dividend expansion as a positive factor.Son said, "On the 6th, the company announced its first interim dividend since its founding, at 1,750 won per share," adding, "As it plans to continue a dividend policy that takes into account the requirements for a high-dividend company, visibility on dividend expansion has improved." ※Operating leverage This is the effect in which costs such as factories, equipment, and labor remain relatively similar whether sales are high or low, but are spread across each product as sales increase.It creates a structure in which even a small rise in revenue can lead to a much larger increase in profit.
/Photo=Yonhap News Agency [Financial News] Here is a roundup of major brokerage reports as of the morning of July 22. 2 million won, as analysts said improvements in artificial intelligence efficiency would not reduce investment but instead expand demand and further stimulate total memory demand./Photo=Yonhap News Agency [Financial News] Here is a roundup of major brokerage reports as of the morning of July 22. 2 million won, as analysts said improvements in artificial intelligence efficiency would not reduce investment but instead expand demand and further stimulate total memory demand.
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