On July 29, the Korea Composite Stock Price Index (KOSPI) closed at 5,663 points, while SK Hynix closed at 1.401 million won. It is reported that BNK Investment & Securities, a local brokerage that had precisely predicted the subsequent plunge in the KOSPI by cutting SK Hynix's target price to 1.85 million won (when Hynix was trading at 2.329 million won) on July 8, when the KOSPI was at a high of 7,700 points, has once again sharply lowered its target price for SK Hynix to 1.48 million won. Notably, in the South Korean securities industry, brokerages rarely issue explicit 'sell' ratings, so lowering the target price effectively serves as a de facto sell recommendation. In a research report on SK Hynix released today, BNK Investment & Securities stated that SK Hynix is currently in a state of oversold short-term, but the rebound potential is limited due to sustained demand slowdown. The report pointed out: 1) SK Hynix's earnings have fallen short of expectations for two consecutive quarters; 2) Despite demand momentum peaking, companies are still pursuing competitive capacity expansion: although demand growth is slowing, chip manufacturers, based on long-term optimistic demand forecasts, have been successively announcing large-scale new construction and expansion investments, leading to heightened concerns about a future supply-demand surplus inflection. Moreover, at a time when the domestic industry cycle is peaking, the successful IPO of China's ChangXin Memory Technologies (CXMT) is negatively impacting the market from the perspective of intensified competition. The brokerage noted that reflecting the slowdown in demand momentum, the company's stock price has plummeted to the lower end of its valuation range and is currently in an oversold state in the short term. However, considering that the competitive expansion attitude among companies is unlikely to change in the short term, and the demand slowdown trend is expected to persist in the second half of the year, the rebound in stock price is expected to be limited. BNK maintained a 'hold' investment rating and lowered the target price from 1.85 million won to 1.48 million won (applying 26E P/B 3.1x).