Market: KOSPI (000660)
Brokerage : IBK Securities
Analyst : Unho Kim
Investment Rating : BUY (Maintained)
Target Price : 1,800,000 KRW (Upgraded)
Core Momentum : Rising memory content per AI server is expected to accelerate server DRAM demand and bit growth, intensifying conventional DRAM supply tightness and supporting sustained ASP and earnings growth.
📊 1. [Valuation & Key Financial Metrics]
- Target Price / Investment Rating: 1,800,000 KRW (Upgraded from previous 1,100,000 KRW) / BUY
- Current Price (as of 4/14): 1,103,000 KRW (Upside potential: 63.6%)
- Market Capitalization: 786,111 billion KRW (KOSPI 5,967.75pt)
- Key Financial Metrics (2024 / 2025 / 2026F / 2027F / 2028F):
- Revenue: 66,193 billion KRW / 97,147 billion KRW / 295,896 billion KRW / 437,233 billion KRW / 592,301 billion KRW
- Operating Profit: 23,467 billion KRW / 47,206 billion KRW / 233,598 billion KRW / 325,442 billion KRW / 444,034 billion KRW
- Net Income Attributable to Controlling Interests: 19,789 billion KRW / 42,919 billion KRW / 202,048 billion KRW / 275,134 billion KRW / 380,059 billion KRW
- EPS: 27,182 KRW / 58,955 KRW / 282,847 KRW / 386,044 KRW / 533,264 KRW
- PER: 6.4x / 11.0x / 3.9x / 2.9x / 2.1x
- PBR: 1.7x / 3.9x / 2.5x / 1.3x / 0.8x
- ROE: 31.1% / 44.2% / 91.8% / 60.4% / 48.7%
🚀 2. [Market Opportunities & Business Outlook]
- 1Q26 Earnings Outlook: 1Q26 revenue is projected to increase by 51.9% QoQ to 49.877 trillion KRW, significantly higher than previous estimates. DRAM revenue is estimated to rise 52.6% QoQ with B/G at 0% and ASP up 65.0%. NAND revenue is expected to grow 51.4% QoQ with B/G at -3.0% and ASP at 70%.
- Operating Profit and Profitability: Operating profit for 1Q26 is forecast to double QoQ to 38.46 trillion KRW. DRAM operating profit is expected to increase 87.7% QoQ with an operating margin of 83%, while NAND operating profit is projected at 6.85 trillion KRW (an operating margin of 60%).
- Systematization of Server DRAM: DRAM bit growth for 2026 has been revised upward to 27.8% YoY, led heavily by the server segment at 55.0%. Contents growth has been significantly revised upward to 38.8%, reflecting the reality that DRAM has established itself as a core system in AI servers.
- Target Price Upgrade and Sustained Boom: Amid ongoing expectations for the expansion of AI server demand, growing anticipation for conventional DRAM demand and supply shortages has driven the target price up to 1,800,000 KRW, applying a PBR of 4.0x to the 2026 expected BPS of 448,465 KRW.
📝 Editor’s Comment (Perspective)
The analyst evaluates that the evolution of DRAM into a core system within AI servers leads to an expansion in server contents growth, subsequently reinforcing expectations for conventional DRAM demand growth and supply shortages. This perspective places greater emphasis on structural demand shifts in DRAM and earnings visibility driven by AI servers rather than short-term cyclical concerns.
To determine whether this investment thesis is unfolding as projected, key items to monitor include the achievement of the projected 38.46 trillion KRW operating profit for Q1, trends in server DRAM bit growth and contents growth, and whether intensifying conventional DRAM supply shortages and ASP increases translate into full-year earnings forecasts. 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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