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2026-09-14 12:26:26 G Sachs published a research report stating that it met with investors in Toronto, Boston, New York and San Francisco to discuss the South Korean technology sector, with most discussions centered on the memory segment. The bank said North American investors were generally more positive on memory than Asian investors. From a stock-picking perspective, investors showed no clear preference between SAMSUNG ELECTRONICS (005930.KS) and SK HYNIX (000660.KS), although both companies attracted very high attention. The bank reiterated its Buy ratings on SAMSUNG ELECTRONICS (005930.KS) and SK HYNIX (000660.KS), with Samsung also remaining on its Conviction List Buy. The bank summarized 10 key pieces of feedback from North American investors, including: industry fundamentals remain solid and, at current valuation levels, downside risk for both stocks appears limited, although the lack of major near-term catalysts and positioning concerns have prevented investors from actively increasing holdings; the market has already lowered short-term pricing and earnings expectations, with most investors expecting DRAM and NAND average selling prices to rise about 20% QoQ in 3Q26, while significant appreciation of the Korean won against the USD may create downside pressure on the two companies' third-quarter earnings; views on HBM pricing remain divided, although expectations have also moderated; opinions differ regarding the binding effect of long-term agreements (LTAs); memory specification downgrades and optimization are mainly due to supply tightness rather than weakening demand, though higher shipment volumes may not fully offset lower memory content per box in the short term; investors have already factored in Chinese memory suppliers gaining more than 10% market share by 2028, with concerns over oversupply from incremental capacity over the next few years easing compared with before; investor attention toward SAMSUNG ELECTRONICS (005930.KS)'s foundry business is higher than in the past and compared with other regions; expectations for shareholder returns have generally increased, though investors believe additional measures are needed to become a meaningful positive catalyst; valuation discussions mainly focus on price-to-earnings ratios, but target multiples are lower than those in 1H26; from a fundamentals perspective investors are relatively more optimistic on SAMSUNG ELECTRONICS (005930.KS), while stronger shareholder returns, higher beta and narrowing discounts of local shares versus ADRs make SK HYNIX (000660.KS) more attractive. Overall, both companies continue to receive strong investor attention. The bank assigned a 12-month target price of KRW490,000 for SAMSUNG ELECTRONICS (005930.KS) common shares and KRW360,000 for preferred shares. It assigned a 12-month target price of KRW3.5 million for SK HYNIX (000660.KS), corresponding to a target price-to-earnings ratio of 9x. (da/u)~ AASTOCKS Financial News Website: www.aastocks.com This article was automatically translated by AI, the Chinese version should be considered the authoritative version. AASTOCKS.com Limited does not guarantee its accuracy or completeness and accepts no liability for any damages or losses arising from the use of this translation. | |