[EQUITIES] SK hynix to beat earnings estimates in Q3: Yuanta

[THE INVESTOR]  Yuanta Securities on Sept. 19 forecast SK hynix’s third-quarter operating profit could beat analysts’ projections, raising the stock target price to 50,000 won (US$45) from the previous 42,000 won.

“SK hynix’s third-quarter operating profit will be 650 billion won. That may beat analysts’ estimates of 567.1 billion won,” said the securities firm. “Its NAND business is expected to have made a turnaround while its DRAM business is also cutting costs.”

NAND flash memory chips are used for long-term storage in smartphones and computers, while DRAM chips are used for temporary data storage.

Yuanta predicted the chipmaker would see a streak of improving profits in the coming months on the growing demands for PCs and the soaring Chinese market.

The firm estimated the company’s fourth-quarter operating profit will reach 792 billion won.

By Lee Ji-yoon (jylee@heraldcorp.com)