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Foreigners scoop up SK hynix shares on upbeat earnings forecast
By KH디지털2Published : Jan. 16, 2015 - 10:23
Foreign investors' preference for SK hyix Inc., the world's second-largest manufacturer of memory chips, has not let up as they bet on the chipmaker raking in huge earnings on the back of a continued recovery in chip prices, data showed on Friday.
Shares of SK hynix soared to close at a 52-week high of 50,300 won (US$46.6) on Monday on a continued buying spree by foreign investors, although they fell slightly to finish at 49,500 won on Thursday. SK hynix has gained some 7 percent so far this year.
Last year, offshore investors bought a net 1.82 trillion won worth of SK hynix stocks, the second-largest amount after the 3.92 trillion won purchase of stocks in Samsung Electronics, the world's No. 1 manufacturer of smartphones.
In 2013, their net buying of SK hynix shares reached 3.93 trillion won.
Their ownership in SK hynix also increased sharply on the back of stock purchases. Some 50.16 percent of SK hynix was held by foreigners as of Thursday, up from 49.92 percent at the end of last year.
The figure reached about 42.92 percent at the end of 2013, a sharp increase from 24.87 percent at the end of 2012 and 23.12 percent at the end of 2011.
SK hynix's rally is fueled by optimism that its earnings for the October-December period would be better than expected and its bottom line would continue to improve.
"SK hynix's fourth-quarter results might have beaten market estimates as demand from smartphone makers remained firm and the foreign exchange rate was favorable to the chipmaker," said Kim Young-chan, an analyst at Shinhan Investment Corp.
Lee Jae-yun, an analyst at Yuanta Securities Co., also painted a rosy picture for SK hynix, saying its profitability continues to improve on the firmer won versus the U.S. dollar.
"The DRAM sector is entering a long-term prosperity cycle, and its NAND flash business could become another major revenue source for SK hynix," said Lee.
The analyst put the fourth-quarter sales and operating income at 4.9 trillion won and 1.6 trillion won, respectively, which would mark the best performance on a quarterly basis. (Yonhap)
Shares of SK hynix soared to close at a 52-week high of 50,300 won (US$46.6) on Monday on a continued buying spree by foreign investors, although they fell slightly to finish at 49,500 won on Thursday. SK hynix has gained some 7 percent so far this year.
Last year, offshore investors bought a net 1.82 trillion won worth of SK hynix stocks, the second-largest amount after the 3.92 trillion won purchase of stocks in Samsung Electronics, the world's No. 1 manufacturer of smartphones.
In 2013, their net buying of SK hynix shares reached 3.93 trillion won.
Their ownership in SK hynix also increased sharply on the back of stock purchases. Some 50.16 percent of SK hynix was held by foreigners as of Thursday, up from 49.92 percent at the end of last year.
The figure reached about 42.92 percent at the end of 2013, a sharp increase from 24.87 percent at the end of 2012 and 23.12 percent at the end of 2011.
SK hynix's rally is fueled by optimism that its earnings for the October-December period would be better than expected and its bottom line would continue to improve.
"SK hynix's fourth-quarter results might have beaten market estimates as demand from smartphone makers remained firm and the foreign exchange rate was favorable to the chipmaker," said Kim Young-chan, an analyst at Shinhan Investment Corp.
Lee Jae-yun, an analyst at Yuanta Securities Co., also painted a rosy picture for SK hynix, saying its profitability continues to improve on the firmer won versus the U.S. dollar.
"The DRAM sector is entering a long-term prosperity cycle, and its NAND flash business could become another major revenue source for SK hynix," said Lee.
The analyst put the fourth-quarter sales and operating income at 4.9 trillion won and 1.6 trillion won, respectively, which would mark the best performance on a quarterly basis. (Yonhap)
