Market: KOSPI (000660)
Brokerage : iM Securities
Analyst : Myeongsub Song
Investment Rating : Buy (Maintain)
Target Price : 1,500,000 KRW (Maintained)
Core Momentum : Sharp conventional DRAM contract-price increases are expected to drive a strong Q2 earnings improvement, while the planned ADR listing provides a catalyst for valuation multiple recovery, subject to geopolitical and liquidity risks.
📊 1. [Valuation & Key Financial Metrics]
- Target Price / Investment Rating: 1,500,000 KRW / Buy (Maintain)
- Current Price (as of April 23, 2026): 1,225,000 KRW (Upside potential: 22.4%)
- Capital / Shares Outstanding / Market Capitalization: 3,658 billion KRW / 712.7 million shares / 871,635 billion KRW
- Foreign Ownership / 52-Week Price Range: 53.1% / 173,800 ~ 1,224,000 KRW
- Key Financial Metrics (2025 / 2026E / 2027E / 2028E):
- Revenue: 97,147 billion KRW / 304,805 billion KRW / 310,902 billion KRW / 286,029 billion KRW
- Operating Profit: 47,206 billion KRW / 226,291 billion KRW / 199,416 billion KRW / 154,680 billion KRW
- Net Income: 42,919 billion KRW / 193,678 billion KRW / 162,494 billion KRW / 128,241 billion KRW
- EPS: 58,955 KRW / 271,752 KRW / 227,997 KRW / 179,936 KRW
- BPS: 165,544 KRW / 437,933 KRW / 663,121 KRW / 840,248 KRW
- PER: 11.0x / 4.5x / 5.4x / 6.8x
- PBR: 3.9x / 2.8x / 1.8x / 1.5x
- ROE: 44.2% / 89.5% / 41.4% / 23.9%
- EV/EBITDA: 7.6x / 3.0x / 2.7x / 2.5x
🚀 2. [Market Opportunities & Business Outlook]
- 1Q26 Performance Review: Operating profit recorded 37.6 trillion KRW, slightly missing market and house estimates (late 30 trillion KRW range). This was due to NAND shipment growth rates falling short of prior guidance (-10%) and a relatively high portion of HBM products without price increases. Accounting for a 10% performance bonus provision starting from Q1, actual operating profit is estimated at 41.8 trillion KRW.
- 2Q26 Earnings Outlook: Projected revenue and operating profit for 2Q26 are estimated at 79.4 trillion KRW and 58.9 trillion KRW, respectively. DRAM and NAND ASP increases are reflected at 32% and 37%, and fixed transaction prices for long-term contract Conventional DRAM are expected to surge by 30-50%, driving an overall average increase in the mid-30% range.
- Valuation & ADR Momentum: An ADR listing is being pursued during CY26. Applying a target P/B of 3.5x based on the FY26 expected BPS (437,933 KRW)—factoring in a CY25 peak P/B of 4.0x—the target price of 1.5 million KRW is maintained.
- Macro and Risk Factors: The target price assumes a short-lived resolution of the Iran conflict. If the conflict is prolonged, sustained high interest rates, a slowdown in global liquidity growth, and a deceleration in AI investments and memory industry conditions would make a downward adjustment of valuation multiples inevitable.
📝 Editor’s Comment (Perspective)
The analyst maintains the target price by balancing potential valuation multiple recovery tied to the pursued ADR listing and sharp 2Q operating profit growth to 58.9 trillion KRW against potential downside risks such as conservative Q1 cost recognitions and valuation multiple contraction if the Iran conflict is prolonged. This perspective focuses on 2Q ASP expansion and valuation recovery potential amidst transient earnings variations and geopolitical risks.
To determine whether this investment thesis is unfolding as projected, key items to monitor include the realization of the projected 58.9 trillion KRW operating profit for Q2, the actual price hike magnitude for Conventional DRAM fixed transaction contracts alongside blended DRAM ASP trends, the schedule execution for the CY26 ADR listing, and how geopolitical developments regarding the Iran conflict impact liquidity and industry conditions. 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.
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