DI is projected to achieve record Q2 2024 earnings and expand equipment supply beyond HBM to general DRAM and NAND, according to Hana Securities analyst Kwon Tae-woo on July 24. The performance improvement was driven by concentrated delivery of HBM4 wafer tester orders worth approximately 196 billion won to SK Hynix, received early this year. Hana Securities views the growth trajectory as likely to extend into next year as memory chipmakers resume general-purpose memory expansion and new fab investments accelerate.
DI Projects Record Q2 2024 Earnings on SK Hynix HBM4 Orders
Hana Securities analyst Kwon Tae-woo estimates DI's Q2 consolidated revenue at 160.6 billion won and operating profit at 33.1 billion won. These figures represent year-over-year increases of 34.7% and 169.8% respectively, marking record quarterly performance. The analyst noted that first-half cumulative operating profit of approximately 52 billion won already exceeds last year's annual operating profit.
The earnings improvement was led by SK Hynix HBM4 wafer tester supply. Equipment orders worth approximately 196 billion won received early this year were delivered with concentration in Q2, improving profitability at subsidiary Digital Frontier. The parent company is also expected to see sales increases driven by expanded package tester shipments.
Second-Half Equipment Supply Expands to General DRAM and NAND
Additional HBM volume negotiations are ongoing in the second half. General-purpose DRAM investment resumption and NAND wafer tester supply are beginning. Analyst Kwon stated that concerns about order gaps are limited as general-purpose memory expansion that was postponed due to HBM-focused investment resumes, which is likely to expand test equipment demand together.
Next Year Fab Investments Include SK Hynix Cheongju P&T7 and Samsung Pyeongtaek P5
Next year, SK Hynix Cheongju P&T7 wafer test line construction, Samsung Electronics Pyeongtaek P5, and SK Hynix M17 new fab investments are expected to accelerate, increasing equipment supply opportunities. Given the business structure where wafer input volume increases lead to tester demand expansion, benefits from the memory expansion cycle are expected to continue.
Hana Securities Forecasts 101.3 Billion Won Annual Operating Profit
Hana Securities forecasts DI's full-year consolidated revenue at 573 billion won and operating profit at 101.3 billion won. This marks the first time the company's annual operating profit is expected to exceed 100 billion won. Analyst Kwon added that the current stock price remains in an undervalued range relative to projected earnings, and if second-half HBM and general-purpose memory equipment shipments continue, the earnings improvement trend is likely to extend into next year.
FAQ
What were DI's projected Q2 2024 earnings according to Hana Securities?
Hana Securities analyst Kwon Tae-woo estimates DI's Q2 consolidated revenue at 160.6 billion won and operating profit at 33.1 billion won, representing year-over-year increases of 34.7% and 169.8% respectively and marking record quarterly performance.
Why did DI's earnings improve in Q2 2024?
The performance improvement was driven by concentrated delivery of HBM4 wafer tester orders worth approximately 196 billion won to SK Hynix, received early this year, which improved subsidiary Digital Frontier's profitability, while the parent company saw sales increases from expanded package tester shipments.
What fab investments are expected next year according to the analyst?
Next year, SK Hynix Cheongju P&T7 wafer test line construction, Samsung Electronics Pyeongtaek P5, and SK Hynix M17 new fab investments are expected to accelerate, increasing equipment supply opportunities for DI.
