Market: KOSPI (000660)
Brokerage : DS Investment & Securities
Analyst : Surim Lee
Investment Rating : BUY (Maintain)
Target Price : KRW 3,100,000 (Maintain)
Core Momentum : A higher commodity DRAM production mix is expected to sustain resilient ASPs in the second half, supporting sequential quarterly operating profit growth through 4Q27 amid an absence of oversupply signals.
📊 1. [Valuation & Key Financial Metrics]
- Stock Performance & Investment Rating
- Investment Rating: BUY (Maintain)
- Target Price: KRW 3,100,000 (Maintain)
- Current Price (As of 07/28): KRW 1,550,000
- Upside Potential: 100.0%
- Valuation Multiples
- Annual P/E Trend: 2023 -11.3x → 2024 6.4x → 2025 10.1x → 2026F 5.2x → 2027F 3.3x
- Annual P/B Trend: 2023 1.9x → 2024 1.7x → 2025 3.5x → 2026F 3.5x → 2027F 1.7x
- Annual EV/EBITDA Trend: 2023 21.7x → 2024 3.9x → 2025 6.1x → 2026F 3.3x → 2027F 1.5x
- Key Financial Forecasts
- 2023: Revenue KRW 32.77T, Operating Loss KRW 7.73T, Pre-tax Loss KRW 11.66T, Net Loss KRW 9.11T, EPS KRW -12,517, ROE -15.6%
- 2024: Revenue KRW 66.19T, Operating Profit KRW 23.47T, Pre-tax Profit KRW 22.59T, Net Profit KRW 19.79T, EPS KRW 27,182, ROE 31.1%
- 2025: Revenue KRW 97.15T, Operating Profit KRW 47.21T, Pre-tax Profit KRW 45.99T, Net Profit KRW 37.43T, EPS KRW 51,410, ROE 41.0%
- 2026F: Revenue KRW 345.12T, Operating Profit KRW 267.49T (OPM 77.5%), Pre-tax Profit KRW 266.79T, Net Profit KRW 217.27T, EPS KRW 298,446, ROE 100.4%
- 2027F: Revenue KRW 519.82T, Operating Profit KRW 414.97T (OPM 79.8%), Pre-tax Profit KRW 414.37T, Net Profit KRW 337.45T, EPS KRW 463,534, ROE 68.5%
🚀 2. [Market Opportunities & Business Outlook]
- 2Q26 Earnings Review
- 2Q26 revenue reached KRW 79.3T (+51% QoQ) and operating profit recorded KRW 60.3T (+60% QoQ, OPM 76%), meeting the brokerage estimate of KRW 61T while operating margin exceeded the estimated 75%.
- Estimated DRAM ASP rose 30% QoQ and NAND ASP increased 57% QoQ, while bit growth (B/G) met guidance at 8% for DRAM and outperformed expectations at 18% for NAND.
- Driven by a surge in sales of server-facing LPDDR products including SOCAMM2, operating margins were recorded at 81% for DRAM and 65% for NAND.
- Second-Half ASP Outlook & Earnings Revisions
- As the company is aggressively expanding its generic DRAM production weighting in the second half, ASPs are projected to remain resilient compared to the second quarter.
- Reflecting favorable foreign exchange rates and shipment growth, 3Q26 operating profit forecast has been revised upward to KRW 78T (+29% QoQ, OPM 79%).
- Full-year operating profit is forecast at KRW 267T (+467% YoY, OPM 78%) for 2026 and KRW 415T (+55% YoY, OPM 80%) for 2027.
📝 Editor’s Comment (Perspective & Thesis Verification)
The analyst views that semiconductor equities are far from finished, despite ongoing market skepticism and painful corrections regarding sustained AI infrastructure investments. This perspective places greater emphasis on continuous quarterly operating profit expansion through 4Q27, the complete absence of oversupply signals, and expectations that 3Q DRAM ASP growth will surpass previous estimates, rather than short-term market noise.
To verify whether this investment thesis unfolds as expected going forward, it is necessary to track the resilience of ASPs driven by increased generic DRAM production weighting in the second half, the continuity of sequential quarterly operating profit growth, and whether any signs of oversupply emerge. Such changes can be verified through future quarterly earnings releases and official company IR materials.
📢 Disclaimer & Source
Source: This content has been structured and newly written based on officially disclosed financial facts and data from brokerage reports.
Investment Risk Notice: This content is provided for informational and linguistic reference purposes only. Under no circumstances does it constitute financial advice or a recommendation to buy or sell any specific securities. All investment decisions and financial responsibilities rest entirely with the investor.
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