Market: KOSPI (000660)
Brokerage : iM Securities
Investment Rating : Buy (Maintain)
Target Price : 1,500,000 KRW (Upgraded)
Core Momentum : Sharp DRAM and NAND ASP increases are driving substantial earnings upgrades, while sustained server shipment growth and rising memory content supported by Big Tech Capex are critical to extending demand momentum beyond the first half.
📊 1. [Valuation & Key Financial Metrics]
- Target Price / Investment Rating: 1,500,000 KRW / Buy (Maintain)
- Current Price (as of March 31, 2026): 807,000 KRW (Upside potential: 85.9%)
- Capital / Shares Outstanding / Market Capitalization: 3,658 billion KRW / 712.7 million shares / 622,189 billion KRW
- Foreign Ownership / 52-Week Price Range: 53.1% / 164,800 ~ 1,099,000 KRW
- Key Financial Metrics (2025 / 2026E / 2027E / 2028E):
- Revenue: 97,147 billion KRW / 314,416 billion KRW / 289,263 billion KRW / 332,653 billion KRW
- Operating Profit: 47,206 billion KRW / 233,545 billion KRW / 185,638 billion KRW / 213,643 billion KRW
- Net Income: 42,919 billion KRW / 187,799 billion KRW / 151,166 billion KRW / 175,360 billion KRW
- EPS: 58,955 KRW / 263,502 KRW / 212,102 KRW / 246,049 KRW
- BPS: 165,544 KRW / 429,684 KRW / 638,977 KRW / 882,217 KRW
- PER: 11.0x / 3.3x / 4.1x / 3.5x
- PBR: 3.9x / 2.0x / 1.4x / 1.0x
- ROE: 44.2% / 88.0% / 39.7% / 32.3%
- EV/EBITDA: 7.6x / 1.9x / 1.6x / 0.7x
🚀 2. [Market Opportunities & Business Outlook]
- Upward Revisions to Earnings Projections (2Q26 & FY26): Operating profit forecasts for the second quarter and full year have been lifted to 60.6 trillion KRW and 233.5 trillion KRW, respectively, reflecting upward adjustments to DRAM and NAND ASP growth expectations. Despite mounting pricing levels, customers exhibit unwavering appetite to secure memory supplies.
- 1Q26 Performance Preview: Revenue and operating profit for the first quarter are estimated at 56.8 trillion KRW and 39.4 trillion KRW, representing quarter-on-quarter growth of 73% and 105%. Factoring in provisions for employee bonuses, actual operating profit likely reaches 43.3 trillion KRW. Exceptional performance stems from sharp 71% and 80% surges in DRAM and NAND ASPs alongside favorable USD-KRW exchange rate movements.
- Demand Outlook Beyond 2Q26 and Capex Variables: To offset headwinds from sluggish PC and smartphone demand from 2Q26 onwards, a rapid increase in server shipments and memory content per box is essential, with the continued upward revision of Big Tech Capex growth acting as a critical variable supporting this trend.
- Spot Pricing and Supply Dynamics: While mild softness in spot prices is unlikely to trigger a severe downturn, any accelerated pullback could increase memory BOM cost pressures across the industry, requiring close tracking of near-term spot price behavior.
- Valuation and Geopolitical Risks: The stock currently trades below 2x its FY26 BPS, with valuation multiples under pressure due to geopolitical tensions. Assuming an ADR listing in the second half allows multiples to approach prior peak levels, the 1.5 million KRW target price remains achievable. However, prolonged geopolitical conflicts could weigh on tech investments and industry conditions, warranting potential multiple contractions.
📝 Editor’s Comment (Perspective)
The analyst evaluates that despite valuation contraction concerns driven by geopolitical uncertainties, sharp ASP expansion in DRAM and NAND together with currency tailwinds have propelled substantial upward revisions to quarterly and annual earnings outlooks. Furthermore, the analysis highlights that sustained growth in server shipments and memory capacity alongside the ongoing upward revision of Big Tech Capex growth rates serve as vital verification variables to absorb sluggishness in PC and smartphone sectors post-2Q26.
To determine whether this investment thesis is unfolding as projected, key items to monitor include Q1 profit provisions, the trajectory of DRAM and NAND ASPs, spot price stability, and how Big Tech Capex trends and geopolitical developments impact broader capital expenditures and industry trends. 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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