Market: KOSPI (000660)
Brokerage : Yuanta Securities
Analyst : Gilyhun Baik, Seokmin Lim
Investment Rating : BUY (Maintained)
Target Price : 1,900,000 KRW (Upgraded)
Core Momentum : Stronger-than-expected DRAM and NAND pricing is expected to drive substantial Q2 earnings upside, while favorable long-term contract pricing strengthens cash-flow visibility and reduces memory-cycle earnings volatility.
📊 1. [Valuation & Key Financial Metrics]
- Target Price / Investment Rating: 1,900,000 KRW / BUY (Upgraded from 1,800,000 KRW)
- Current Price (as of 04/23): 1,225,000 KRW (Upside potential: 55%)
- Market Capitalization: 873,060.4 billion KRW (Common stock)
- Key Financial Metrics (2023A / 2024A / 2025A / 2026F):
- Revenue: 32,766 billion KRW / 66,193 billion KRW / 97,147 billion KRW / 358,695 billion KRW
- Operating Profit: -7,730 billion KRW / 23,467 billion KRW / 47,206 billion KRW / 275,507 billion KRW
- Net Income Attributable to Controlling Interests: -9,112 billion KRW / 19,789 billion KRW / 42,919 billion KRW / 213,763 billion KRW
- PER: -8.6x / 6.6x / 5.2x / 4.1x
- PBR: 1.4x / 1.7x / 1.8x / 2.5x
- EV/EBITDA: 17.5x / 4.0x / 3.6x / 2.4x
- ROE: -15.6% / 31.1% / 44.2% / 93.9%
🚀 2. [Market Opportunities & Business Outlook]
- 1Q26 Performance Summary: 1Q26 revenue reached 52.6 trillion KRW (+198.1% YoY, +60.2% QoQ) and operating profit recorded 37.6 trillion KRW (+405.5% YoY, +96.2% QoQ, OPM 71.5%), slightly missing the 1M consensus (revenue 53.9 trillion KRW, operating profit 38.3 trillion KRW).
- Segment Performance Trends: DRAM recorded revenue of 41.0 trillion KRW (+188.9% YoY, +64.4% QoQ) and operating profit of 32.1 trillion KRW (OPM 78.2%), driven by conventional DRAM price increases. NAND recorded revenue of 11.1 trillion KRW (+256.9% YoY, +46.9% QoQ) and operating profit of 5.5 trillion KRW (OPM 50.0%); shipments declined (-10.0%) due to base effects and tech migration, but record-high profitability was achieved on strong pricing (+65.0%).
- 2Q26 Earnings Forecast Upgrades: Projected 2Q26 revenue and operating profit are revised upward to 84.9 trillion KRW (+281.8% YoY, +61.4% QoQ) and 65.5 trillion KRW (+610.9% YoY, +74.1% QoQ), respectively, significantly beating consensus estimates (revenue 74.1 trillion KRW, operating profit 55.6 trillion KRW).
- Supply and Contract Structure Dynamics: While memory price growth is expected to moderate in subsequent quarters, it will likely remain well above consensus. Long-term contract prices with key clients are exceeding previous expectations, which is anticipated to reduce semiconductor cyclical volatility and reinforce shareholder-friendly activities based on stable cash flows.
📝 Editor’s Comment (Perspective)
The analyst evaluates that higher-than-expected long-term contract prices with major clients will reduce memory semiconductor volatility and secure stable cash flows, thereby reinforcing shareholder-friendly activities. This perspective places emphasis on earnings stabilization through long-term contracts rather than short-term price fluctuations.
To determine whether this investment thesis is unfolding as projected, key items to monitor include the delivery of the projected 65.5 trillion KRW operating profit for Q2, the trajectory of subsequent memory price trends, and whether long-term contract pricing actually translates into stable cash flows and strengthened shareholder returns. These developments can be tracked through upcoming quarterly and annual earnings releases, official corporate IR materials, and regulatory disclosures via DART/KRX.
📢 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.
Contact: Compliance and Copyright Inquiries (ksb220805@gmail.com)
