Samsung Electronics and SK Hynix, the top two stocks by market value in South Korea, posted record first-quarter results, prompting brokerages to lift price targets and fueling talk of “Samsung at 300,000 won” and “Hynix at 2 million won.” Their share moves diverged after earnings, but analysts largely pointed to continued momentum.
According to the Korea Exchange on the 26th, Samsung Electronics shares rose 13.67% from 193,100 won on April 7, when it reported earnings, to 219,500 won on April 24. The stock gained 1.76% on the day it disclosed first-quarter revenue of 133 trillion won and operating profit of 57.2 trillion won. It then jumped 7.12% the next day after news of a two-week ceasefire agreement between the United States and Iran.
SK Hynix, however, saw a mismatch between results and the stock’s immediate reaction. The company reported consolidated first-quarter operating profit of 37.6103 trillion won, up 405.5% from a year earlier, on revenue of 52.5763 trillion won, up 198.1%. Yet the shares edged down 0.08% over two sessions through April 24, slipping from 1,223,000 won to 1,222,000 won.
The move was attributed to expectations for a semiconductor upturn having been priced in. SK Hynix shares had already surged 38.04% from April 7 to April 22, the day before its earnings release, far outpacing Samsung Electronics and the Kospi. With optimism reflected in the price, profit-taking emerged after the announcement, producing a “sell on the news” pattern.
Despite the short-term split, brokerages broadly shared a positive medium- to long-term view. With investors divided between adding to holdings and taking profits, major firms said they were watching whether the earnings momentum can be sustained and raised their assessments of further upside.
Yuanta Securities raised its target price for Samsung Electronics to 330,000 won, saying it expects the company to reduce volatility in the memory chip business and expand shareholder-friendly actions supported by stable cash flow. Shinhan Investment Corp., Hanwha Investment & Securities and iM Securities also lifted their targets to 300,000 won and maintained “buy” ratings.
Optimism also continued for SK Hynix. Daol Investment & Securities raised its target to 2.1 million won, saying that given the sector’s tendency to move about six months ahead, signs are growing that the boom will persist six months from now. Korea Investment & Securities set a target of 2.05 million won, citing sustained earnings momentum from changes in the demand structure. KB Securities and Meritz Securities also raised their targets to 2 million won.
* This article has been translated by AI.
Copyright ⓒ Aju Press All rights reserved.