买入：预计一季度业绩出色，新常态化开始

Semiconductors &Equipment Buy: Outstanding 1Q earnings expected, and the startof a new normal +AnotherrecordOPin2QeamidpersistingcommodityDRAM rallyaswellasHBM3epricehikes 1,800,0001,500,000 • Retain Buy; raise TP to KRW1.8m (from KRW1.5m) onhigher earnings outlook 1,027,000+75.3%(as of 10 Apr 2026) Exceptional 1Q seen: Due to 1) higher DRAM and NAND ASP at +56%, +80% q-0-q (vs+43%,+40%prev)amid steepermemory shortagefrommoreaggressive serverbuild-up(shipments up 20% y-o-y in 26e) and booming SSD demand for cloud storage forhandling inference and agentic Al; 2) NAND margin improvement to 65% in 1Q from 30%in 4Q amid layer upgrade to 32x layers; and 3)2% KRW depreciation: we expect Hynix's1Q OP to be 26% higher than our previous forecast at KRW42trn (+117% q-0-q), withsales of KRW52trn (+58% q-0-q). DRAM ASP growth will be slightly lower due to a higherHBM portion in sales at around 35-40%, while NAND margin will be higher with bettercost structure with quad-level-cell (QLC) floating gate technology and 32x layer upgrade Another record oP in 2Qe and 2026e: We see DRAM and NAND price hikes persistingin 2Q, at 28% and 25% q-0-q, leading to another record OP of KRW57trn (+37% q-o-q),with sales of KRW68trn (+32% q-o-q) on: 1) price hikes for HBM3e on top of continuedcommodityDRAMpricehikesbeforeinventoryrestockingforthenewVeraRubinplatform; 2) robust shipments of SO-CAMM2; and 3) soaring eSSD demand for strongerserver build-up for inferencing facilities. As the margin gap between commodity DRAMand HBM3e widens, Hynix will raise prices for new HBM3e orders, while pursuing moreaggressive pricing for HBM4. DRAM contents increase to 1.5TB (from 0.6TB previously)per Vera CPU and standalone sales at Al service providers should boost SO-CAMMsales, leading to more capacity allocation to tighten commodity DRAM supply.We estimate SO-CAMM2 will account for 6% of DRAM demand in 2026. For 2026e, weexpect OP growth of 404% y-0-y to KRW238trn, with sales of KRW285trn (+193% y-0-y) NAND the next catalyst; memory at midpoint of supercycle: With strong inferencingactivities including handling key-value (KV) caching, NAND demand as a form of ICMS issoaring. Improving response time in agentic/physical Al services and less expensivetoken management are key, and will demand more NAND storage from 2H.Witha 28%eSSDmarket share, Hynix will beakeybeneficiary.Wethink 1)memory is at a midpointsimilar to the 1990-95 supercycle when office automation led to a 6yr DRAM shortage;2) AI focus is shifting to memory (HBM, SO-CAMM2, ICMS) from GPU amid soaringinference activities, lowering costs per token and boosting Al users into a virtuous cycle;3) absolute quarterly earnings growth is key for the share price; 4) CsPs will continueaggressivecapexto secure leadership in Aldata centres. Ricky Seo*Head of Korea Research, Semiconductor and DisplayThe Hongkong and Shanghai Banking CorporationLimited, Seoui Securities Branchrickyjuilseo@kr.hsbc.com+82 2 3706 8777 HanKil Chang*Research Analyst,Korea TechnologyThe Hongkong and Shanghai Banking CorporationLimited, Seoul Securities Branchhan.kil.chang@kr.hsbc.com+82237068750 Retain Buy; lift TP to KRW1.8m (from KRW1.5m): On stronger memory prices, we lift2026/27e OP by 29%/32%. Hynix will further benefit from the commodity DRAM andNAND rally, with HBM3e price hikes and 40-50% premium of HBM4. Our P/B based TPrises to KRW1.8m on a target multiple of 2.4x 2027e BVPS. Even at our TP, the impliedP/Ewould only be 5x2027eEPS.Our 2026/27e OP is 6%/7%higher than consensus.Risks: 1) higher US interest rates as neo-CSPs and Open Al invest through financing; *Employed byanon-USaffliateofHSBC Securities (USA) Inc,and isnot registered/qualified pursuant foFINRAregulations HSBCGlobal InvestmentSummit/14to16April2026Find out more Issuer of report: The Hongkong and ShanghaiBankingCorporationLimited,Seoul SecuritiesBranch Disclosures & Disclaimer This report must be read with the disclosures and the analyst certifications inthe Disclosure appendix, and with the Disclaimer, which forms part of it. View HSBC Global Investment Research at:https://www.research.hsbc.com Al server Source: Company data, HSBC estimates Source: Company data, HSBC estimates Source: Company data, HSBC estimates Source:HSBC estimates (see:Global tech-Open Al:Commitments vs cash fowsSource: Company data, Bloomberg consensus estimates. Source for both charts: Company data, WSTS, DRAMeXchange UpcyclesDetails(1)1990-1995Personalcomputer(PC)boom,widespreadadoptionofPCperhousehold,leadingtogrowth inDRAMdemand(2) 1998-2000Strong replacement demand from the'Y2K'crisis, leading to even stronger PC replacement investment(3) 2002-2006Demand for downloadable services spiked with the help of slim notebook demand from LCD, release of iPod, and development oflegacy cell phones(4) 2009-2010Launch of the world'sfirst smartphone, and startof anew era in mobile application demand(5) 2012-2015Prolonged upcycle due to sudden supply reduction from