Market: KOSPI (000660)
Brokerage : Mirae Asset Securities
Analyst : Younggun Kim
Investment Rating : BUY (Maintained)
Target Price : 1,540,000 KRW (Maintained)
Core Momentum : Resilient memory pricing and structural capacity constraints are driving upward earnings revisions, while the planned U.S. ADR listing provides a potential catalyst for multiple expansion and valuation re-rating.
📊 1. [Valuation & Key Financial Metrics]
- Target Price / Investment Rating: 1,540,000 KRW / BUY (Maintain)
- Current Price (as of 26/3/20): 1,007,000 KRW (Upside potential: 52.9%)
- Market Capitalization: 717,691 billion KRW (KOSPI 5,781.20pt)
- Key Financial Metrics (2024 / 2025 / 2026F / 2027F / 2028F):
- Revenue: 66,193 billion KRW / 97,147 billion KRW / 312,741 billion KRW / 426,484 billion KRW / 483,824 billion KRW
- Operating Profit: 23,467 billion KRW / 47,206 billion KRW / 230,464 billion KRW / 317,882 billion KRW / 358,828 billion KRW
- Net Income: 19,789 billion KRW / 42,919 billion KRW / 195,971 billion KRW / 279,987 billion KRW / 329,244 billion KRW
- EPS: 27,182 KRW / 58,955 KRW / 274,331 KRW / 392,853 KRW / 461,965 KRW
- P/E: 6.4x / 11.0x / 3.7x / 2.6x / 2.2x
- P/B: 1.7x / 3.9x / 2.3x / 1.2x / 0.8x
- ROE: 31.1% / 44.2% / 90.1% / 61.8% / 43.6%
🚀 2. [Market Opportunities & Business Outlook]
- Upward Revisions to Earnings Forecasts: Reflecting favorable memory pricing dynamics, 1Q26 estimates have been lifted by 10.9% for revenue and 13.9% for operating profit, reaching 52.5 trillion KRW and 36.7 trillion KRW (+91.6% QoQ), respectively. Full-year 2026 projections have also been revised upward by 11.0% and 12.8% to 313 trillion KRW in revenue (+222% YoY) and 230.5 trillion KRW in operating profit (+388% YoY).
- Memory Pricing and Sustainability: Despite lingering peak-out concerns, elevated price levels and robust return profiles are expected to persist, driven by 1) irreversible mobile specification enhancements, 2) pent-up demand resulting from supply-demand bifurcations between data centers and consumer IT, and 3) structural bottlenecks in capacity additions. As of mid-March, 4Q26 contract prices for PC DRAM DDR5 remained flat while DDR4 rose 2.9%, leaving room for potential upward revisions to the 4Q26 ASP/Gb projection ($1.6).
- ADR Issuance Momentum: Media reports have highlighted management’s intent to pursue a U.S. American Depositary Receipt (ADR) listing. Beyond multiple expansion stemming from exposure to a premium capital market, potential share price momentum could be significantly amplified if the issuance is accompanied by substantial treasury share buybacks.
- Valuation Attractiveness: The 12-month forward P/E trades at an exceptionally low 2.9x, while the P/B sits near historical averages at 1.7x—presenting very limited valuation burden relative to the vastly elevated ROE framework.
📝 Editor’s Comment (Perspective)
The analyst evaluates that solid pricing momentum and supply tightness have propelled meaningful upward revisions to both quarterly and annual earnings outlooks. Furthermore, the analysis highlights that pursuing a U.S. ADR listing will serve as a pivotal catalyst to drive multiple re-rating through access to a premium valuation market alongside potential shareholder enhancement initiatives.
To determine whether this investment thesis is unfolding as projected, key items to monitor include the delivery of the 36.7 trillion KRW operating profit for Q1, the trajectory of memory prices and ASPs through the second half, and concrete developments regarding the ADR issuance terms and accompanying treasury share buybacks. 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.
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